(a) In high technology small batch manufacture, accountants sometimes take the view that standard costing cannot be applied. The move into high technology is generally accompanied by a shift away from labour-dominated to capital-intensive processes. You are required to appraise the application of standard costing in the circumstance described above.
(b) In order to secure and direct employee motivation towards the achievement of a firm’s goals, it may be considered that budget centres should be created at the lowest defined management level.
You are required to discuss the advantages and disadvantages of creating budget centres at such a level.