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Value in the new costing process. Komatsu is now going through the lease desire from Indonesia and China as a result of this variation and A few other elements which will lessen their producing Value that is also instructed in the new costing.
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Over figures show that the total manufacturing expenditures ¥1146 in previous costing method is bigger as opposed to new costing method ¥1092 since the new Price tag tactic is divided into sub groups to improve the plant Management operations and it'll do the job correctly for Komatsu Ltd to achieve their plans pertaining to manufacturing problems but What's more, view it it boosts the cost of the Output Overhead for each Mfg.
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