The administration charge is lower than the operation and depreciation charges. Because of this, the overall cost of possession is higher when compared with the money. Consequently, the overall price of administration is often decreased when compared to the money charges.
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Over figures exhibit that the entire manufacturing charges ¥1146 in old costing method is greater compared to the new costing process ¥1092 because the new cost approach is divided into sub categories to improve the plant Regulate operations and it will get the job done correctly for Komatsu Ltd to attain their targets pertaining to producing considerations but What's more, it enhances the cost of the Output Overhead per Mfg.
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