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Recognition of the Organization's Decision Units and Decision Packages
ZBB decision unit is an operating division for which decision packages are generated and analyzed. It can also be explained as a cost or a budget center. Managers of each decision unit are answerable for developing an explanation of each program to be operated in the next fiscal year or years. In ZBB such programs are termed to as decision packages and each decision package generally will have three or more alternative ways of attaining the decision package's objectives. Shortly, each decision package alternative should contain, as a minimum, goals and/or purposes, resources, activities, and their dollar costs. Also, the decision package must contain an explanation of how it contributes to the mission and aims of the organization.
Advantages of standard costing 1) Measuring efficiency: standard costing is a yardstick for measuring efficiency. The comparison of actual costs with standard costs enables t
areas where zero based budgeting can be effectively used?
Replacement cost It is the cost of replacing a material or asset, by purchase from the current market. If an X material was originally purchased @ Rs. 250 per Kg. And know i
FLEXIBLE BUDGETING Flexible budget may be used in one of two ways: Planning and Control. At the planning stage when budgets are set, to reduce the effect of uncertainty. For ex
Explain the Methods of pricing The following methods are used for intra company transfer pricing: 1) Total cost method: transfer is made at absorption cost which is the t
PERMANENT ABANDONMENT OF PREMISES A company may find it more profitable to concentrate its output in some factories by closing down others. The decision, in this instance, is
Types of Non-Controlled Variables a) Parameters: These are input variables that for a given simulation have a constant value. They are factors which help specify the relat
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critically examine the current cost accounting for price level changes
#labour costing techniques
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