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 issues affecting business organizations

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 issues affecting business organizations

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Various issues affect business organizations (Novák & Popesko, 2017). Companies involved in the production process often get involved in a wide array of activities that must be taken seriously, especially when it comes to production costs and expenses. Among the methods that organizations use to deal with costs is the cost process. Through the cost process, an organization can trace all direct and indirect expenses incurred by an organization. This helps to set the final right prices for their products at completing the production process.

Additionally, the cost process involves five critical steps that must be followed. On the other hand, cost behaviour is a concept used by the organization to understand expense patterns and changes that affect the prices of products manufacture. Taking note of these changes in the costs helps the organization to set the right and affordable prices for products despite the changes they are experiencing and this is crucial to satisfying customers.

References

Novák, P., & Popesko, B. (2017). Cost Variability and Cost Behavior in Manufacturing Enterprises. Economics & Sociology7(4), 89-103. doi: 10.14254/2071-789x.2014/7-4/6

 

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