Unformatted text preview: managers should understand as they attempt to develop more accurate systems. Consistent with Robin Cooper¶s article, Norm Raffish argues in How Much Does That Product Really Cost (Reading 5.2) that the business world has changed so much that traditional cost accounting is no longer applicable. For one thing, the relative proportions of what go into product costs have changed significantly with direct labor content dropping to between 5 an 15%, materials content falling between 45% and 55%, and overhead soaring to between 30% and 50%. Raffish builds the case for activity-based costing as a much more accurate method for determining (among other thins) more accurate product costs....
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This note was uploaded on 11/14/2010 for the course STRATEGIC 438 taught by Professor Jain during the Spring '10 term at Punjab Engineering College.
- Spring '10