1. Differentiate between spoiled and defective material, why costing procedure is differentfor both? 2. Give an example of cost which is a part of unavoidable cost.3. Why there is a need to identify the standard cost?

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1. Differentiate between spoiled and defective material, why costing procedure is different for both?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 8DQ: Can direct materials ever be irrelevant in a make-or-buy decision? Explain. Give an example of a...

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Concept explainers

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.

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1. Differentiate between spoiled and defective material, why costing procedure is different
for both?

2. Give an example of cost which is a part of unavoidable cost.
3. Why there is a need to identify the standard cost?

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