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Sky the Limit

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Submitted By veeni
Words 3835
Pages 16
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|Assignment One |
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|18/04/2011 |
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Executive Summary

The purpose of this report was to analysis costing system at John Deere Component Works (B). Specific objectives were to analyze the reports prepared by William and Vintila and offer recommendations on their suggestion.

Table of Contents
1. Executive Summary ………………………………………………………………………………………………………. 2

2. Table of Content ………………………………………………………………………………………………………………..3

3. Introduction ………………………………………………………………………………………………………………… 4

4. Conclusion & Recommendation ………………………………………………………………………………………………. 5

5. Discussion

5.1 Product Cost under ABC ………………………………………………………………………………………….. 6

5.2 Product Mix has shifted ………………………………………………………………………………………….. 6-7

5.3 Assumption about Cost Variability in ABC ………………………………………………………………. 7-8

5.4 Development of ABC ……………………………………………………………………………………………… 8

5.5 Implementation of ABC …………………………………………………………………………………………. 8-9

5.6 Acceptance of ABC ………………………………………………………………………………………………… 9

5.7 Increasing Lot Size ………………………………………………………………………………………………….9-10

6. References …………………………………………………………………………………………………………………………….11

Introduction

John Deere had been structured to be a captive producer of parts for

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