stage we “attach” a mission center’s costs to the products that pass through it. This is quite easy if all prod- ucts are the same, but more difficult if there is a mix of products. For example, in the Owen Hospital situation in the lecture, all dialyses were the same, so all we needed to do was divide the mission center’s total costs by the number of dialyses to get a cost per dialysis. However, in Destin Brass, there are three distinct products that pass through the mission center, such that the
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TOPICS IN MANAGEMENT ACCOUNTING AMIS 4310 Topics/Case Descriptions Measuring Product Costs Case: Seligram, Inc.: Electronic Testing Operations Case Description: Explores the obsolescence of a cost system when technology changes. In particular, it asks students to increase the number of cost centers and allocation bases. The firm moves from a one-center, direct labor-hour system to a three-center, direct labor-hour and machine-hour
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TOPICS IN MANAGEMENT ACCOUNTING AMIS 4310 Topics/Case Descriptions Measuring Product Costs Case: Seligram, Inc.: Electronic Testing Operations Case Description: Explores the obsolescence of a cost system when technology changes. In particular, it asks students to increase the number of cost centers and allocation bases. The firm moves from a one-center, direct labor-hour system to a three-center, direct labor-hour and machine-hour
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Jessica Turner has a master's degree in accounting and an undergrad degree in business. She established Turner Test Prep, a CPA exam review center, after being rejected by the Big Six accounting firms. She decided to bring the company into existence when she was searching for other employment options, and also because she had experience in the field when she worked at a review center's business office before taking up her master's degree. There, she inadvertently started teaching the math portion
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2003 ROBERT S. KAPLAN Wilkerson Company The decline in our profits has become intolerable. The severe price cutting in pumps has dropped our pre-tax margin to less than 3%, far below our historical 10% margins. Fortunately, our competitors are overlooking the opportunities for profit in flow controllers. Our recent 10% price increase in that line has been implemented without losing any business. Robert Parker, president of the Wilkerson Company, was discussing operating results in the
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Wilkerson Company, was discussing operating results in the la test month with Peggy Knight, his controller, and John Scott, his manufacturing manager. The meeting among the three was taking place in an atmosphere tinged with apprehension because competitors had been reducing prices on pumps, Wilkerson's major product line. Since pumps were a commodity product, Parker had seen no al ternative but to match the reduced prices to maintain volume. But the price cuts had led to declining company profits
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ROBERT S. KAPLAN Wilkerson Company The decline in our profits has become intolerable. The severe price cutting in pumps has dropped our pre-tax margin to less than 3%, far below our historical 10% margins. Fortunately, our competitors are overlooking the opportunities for profit in flow controllers. Our recent 10% price increase in that line has been implemented without losing any business. Robert Parker, president of the Wilkerson Company, was discussing operating results in the latest
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ACCOUNTING H525: MANAGERIAL ACCOUNTING AND CONTROL Winter Quarter 2004 INSTRUCTOR: Professor D. L. Jensen 428 Fisher Hall jensen.7@osu.edu (I check my e-mail several times daily and will respond ASAP) 292-2529 at office (Please leave recorded message; if I'm not in, I'll return your call.) 488-8177 at home (Please leave recorded message; if I'm not in, I'll return your call.) Office Hours: By appointment or chance COMMUNICATIONS CONSULTANT: Ms. Rama Ramamurthy 640 Fisher Hall
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