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Decades after computers first helped business, financial reporting systems still don’t deliver what operating managers really want. Tony Cowderoy and Malcolm Hunt of MML find a way forward.
Making the wish-list come true - Part 2 | Part 1
Again, outsourcing decisions are often made by comparing
fully absorbed costs with external purchase prices. This can
be misleading, since many elements of the fully absorbed cost
will not be avoided by outsourcing. Some companies have outsourced
to ‘cheaper’ suppliers only to find costs increase, because
much of the fully absorbed cost remains.
Good decision making requires managers to be able to identify
the avoidable costs associated with such decisions easily.
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Consultants' Advisory 2004
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