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Participation - Behavioural Aspects of Standards
It has already been pointed out in the previous paragraph such standard costing systems would be more acceptable whether the employees to be evaluated utilizing those standards are included in setting the standards. Participation promotes common understanding concerning objectives and makes the acceptance of organizational goals via the employees more likely. Difference analysis and the control process are assisted also via participation of the employees in the investigation of solutions to the problems that arise. If people are genuinely included, they feel more a part of the team and become highly motivated.
sums with solution of marginal costing
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discuss the problems of installing a costing system
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