Last decades have seen substantial changes in the business world including deregulation, increasing competition and growing expectation of consumers (Atrill and McLaney, 2009, p. 134). These changes have brought about more competitive and dynamic environment across all industries. This paper examines how the changes affected the costing practices used by the company and recommends the ways to tackle the problems posed by the new environment.
Rising overheads
Two or three decades ago manufacturing enterprises like Fabricator inc. featured (Atrill and McLaney, 2009, p. 134) the following:
- Direct labor was one of the dominating elements of total manufacturing costs.
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