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Case study: on costing systems and cost control
Lorson Manufacturing Company
Lorson Manufacturing Company is actively seeking to implement tighter cost control measures in an industry that is largely governed by prices. The purpose of this report is to present and analyse a new costing system proposed by Mr. Jan Lorson for the valve department of the company, and compare it to the existing system, in order to judge whether to go forward with its implementation.
The analysis uses a number of examples to highlight the significant differences in costs between the two systems, and the impact that these vari…
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