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Topic: Business
Number of pages / Number of words: 2 / 395
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In such companies traditional costing system may provide higher profits for the firm overall than ABC.

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How can companies meet this challenge? Functional cost cutting is no longer an option without rapid deterioration in product and service quality. Price increases are rarely possible due to high competition and availability of substitutes. Some viable options are: (1) Abandon unprofitable products, services and customers; (2) Streamline internal business processes to identify and remove waste; and (3) Collaborate with business partners to reduce costs along the value-chain...

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