A US manufacturer of precision custom injection moulds was faced with increased production costs and a decrease in expected lead times. The company’s profitability had decreased although sales had increased and the company had been unprofitable for the three years prior to 2003. The company determined that its traditional volume-based costing was unable to deliver reliable cost information and to address this implemented ABC to improve their costing knowledge. The implementation process used w...

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11.1.2 Manage resource allocation

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