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Internal Factors - Factors affecting productivity improvement
These are the factors which may be modified by the company and may, in themselves, be sub-divided into two categories:
1. Hard factors (such as products or technologies) which are not readily subject to alteration or amendment and will require long-term funding to ensure their modification, and
2. Soft factors (e.g. labour, management methods, etc) which may be changed and certainly can be modified within a relatively short timescale.
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What is Prime Cost? The sum of Direct Labour Cost, Direct Expenses and Direct Material Cost is Prime Cost.
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