Costing Systems and Cost Control
Five cost centres are better than one to satisfy the objectives set in this case. This may be as far as you would go. Further level of detail could be necessary if, for example, during each section, different products spend significantly different times on each machine, and the labour and overheads associated with each machine vary greatly. Another example could be when the labourers within a certain section have varying skills and rates. Otherwise, one should stop when the cost of using more detail is not worth the additional benefit derived.
The information presented does not suggest that one should go any further than the level of five cost centres identified by Mr. Jan Lorson. At this level, the effort required to collect additional data is not substantial. In order to ensure successful implementation of the new system to achieve the primary company objective of cost control, it is essential that the various departments' incentive plans are in line with the cost reduction and control initiative and the benefits perceived by the implementation.
- A Fictional Case Study Examining HR Planning & Issues
- Costing Systems and Cost Control
- New Century Health Clinic Case Study
E-pasta adrese, uz kuru nosūtīt darba saiti:
Saite uz darbu: