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Management Studies

Q. Chess Woods Limited produces two products: wooden chess pieces also wooden inlaid chess boards. Under their traditional price system using one price driver (direct manufacturing labour hrs), the price of a set of wooden chess pieces is $325.00. An analysis of the activities also their prices revealed which three price drivers would be used under a new ABC system. These price drivers would be equipment usage, storage area for the material also type of woods used. The new price of a set of chess pieces was determined to be $298.00 per set.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9311104

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