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To implement a policy of empowerment, the organization will restructure so that:
Expected Future Costs
Projected expenses that a company anticipates incurring in the pursuit of its future activities.
Unavoidable Waste
Waste that cannot be prevented due to the nature of the production process or operational constraints.
Normal Spoilage
The expected or inevitable waste and inefficiency in production processes that is considered acceptable.
Ideal Standard
A benchmark for optimal efficiency under perfect operating conditions, used in variance analysis to set performance goals.
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