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Even in a TQM environment, budgets will still need to be quantified.
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Predetermined standards are at odds with the philosophy of continual improvement inherent in a total quality management programme.
Many of the variances in a standard costing system focus on the control of long-term variable costs.
The first batch of a new product is expected to take 5 hours to manufacture(at a labour cost of $10 per hour)and the expected material cost is $10 per batch.An 80% learning curve is expected to apply,but it is planned to establish a standard cost at the time required to produce the 40th batch of the product.When the learning curve is expressed as a formula Y=ax^b,the value of b is-0.3219281.What will be the standard variable cost per batch?
Which method of pricing is most easily applied when two or more markets for the product or service can be kept entirely separate from each other?
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