Identify the Main Reasons Why Companies Change Existing Systems

question 112

Essay

Identify the main reasons why companies change existing systems?

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Definitions:

Standard Cost System

An accounting method that uses predetermined costs for product costing, budgeting, and inventory valuation purposes.

Work in Process

Items that are in the process of being produced but are not yet completed in a manufacturing setting.

Standard Costs

Estimated costs of production, labor, and materials that are set in order to budget and control expenses.

Fixed Manufacturing Overhead

Expenses associated with manufacturing that do not vary with the level of production, including salaries of managers and depreciation of equipment.