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The Fashionable Company manufactures various types of clothing. The computerized cost accounting system accumulates the costs of manufacturing these products. Variance reports are produced and reviewed but sometimes need to be run again due to errors or revised data. The costs of this reprocessing work is $15,000. A new data validation control procedure within the cost accounting system is proposed to reduce the risk of the data errors from 12% to 1.5%. Costs to implement this procedure and run it every week amount to $700.

Perform an analysis of this procedure and recommend whether the cost-benefit of implementing such a procedure makes sense or not.

Your well-written paper should meet the following requirements: Be 3-4 pages in length. Be formatted according to the CSU-Global Guide to Writing and APA Requirements.

Cite a minimum of two scholarly sources, at least one of which is not provided in, or linked from, the course. The CSU-Global Library is a great place to find these scholarly sources.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92292246

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