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TOTALIMPACT OF BEST PRACTICES ON Costing Best Practices
THE COSTING FUNCTION
This section describes the impact of all the best practices described in this chap-
ter on the costing function. They address three main areas within the costing
function, as noted in Exhibit 9.3. Auditing various sources of costing information
will improve its accuracy. Eliminating old costing reports and replacing them with
ones that focus on scrap levels, obsolescence, cost trends, and direct costs will have
a major impact on the quality of information presented to the rest of the organiza-
tion. Finally, implementing activity-based costing and target costing systems will

Exhibit 9.3 Impact of Best Practices on the Costing Function