Case #15 Destin Brass Products Co Harvard Business School Case #9-190-089 (Rev. April 24, 1997) Questions 1. Explain how costs are estimated in the three cost systems delineated in the case: (a) The traditional cost system, (b) the modified cost system, and (c) the activity based costing (ABC) system. How do you determine which cost system is better suited for a given company? The traditional cost accounting system in Destin is built on measurements of direct and direct costs and on assumptions
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Destin Brass Products Company Activity Based Costing Prepared by: Heidi Meilinger Standard System Step 4: Indirect Cost Pool Step 3: Cost Allocation Base Step 5: 439% of direct run labor cost Step 1: Cost objects: Valves, pumps, And flow controllers Step 2: Direct Costs Revised System Step 4: Indirect Cost Pool Step
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interoffice memorandum to: ROLAND GUIDRY, PRESIDENT OF DESTIN BRASS from: global mba Monterrey team (Maria, Rocio, calixto, hector, ernesto) subject: PRODUCT COST´S ANALYSIS date: [ 8/3/2012 ] cc: dr. Jeff Schatzberg Following-up the estimates cost, we got product costs using the overhead cost activity analysis, and the estimate costs are, Valves $ 37.70 per unit, Pump $ 48.79 per unit and Flow controllers $ 100.76 per unit. Comparing standard unit cost vs the costs estimated by overhead
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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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TRABAJO GRUPAL 1 Contabilidad Gerencial 1. ¿Cuál es el problema que enfrenta la compañía? El principal problema que enfrentan se enmarca en la estrategia de precios del mercado en que se desenvuelven. La competencia baja constantemente los precios de las bombas, línea de productos que representa el 55% de sus ingresos y que, sin embargo, en el último mes ha visto reducido su margen bruto de 35% a 22%. Ello hace que se cuestionen el método de costeo que vienen utilizando: costeo tradicional
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outsourced products did not go away. These residual costs caused more products to become non-world class and hence candidates for outsourcing. The firm has entered the death spiral. Activity-Based Costing Case: Destin Brass Products Co. Case Description: A specialized manufacturer of brass valves, pumps, and flow controllers is troubled by competitive pricing in pumps and higher than expected margins for flow controllers. Managers’ are increasingly questioning whether they know the true manufacturing
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outsourced products did not go away. These residual costs caused more products to become non-world class and hence candidates for outsourcing. The firm has entered the death spiral. Activity-Based Costing Case: Destin Brass Products Co. Case Description: A specialized manufacturer of brass valves, pumps, and flow controllers is troubled by competitive pricing in pumps and higher than expected margins for flow controllers. Managers’ are increasingly questioning whether they know the true manufacturing
Words: 1304 - Pages: 6
outsourced products did not go away. These residual costs caused more products to become non-world class and hence candidates for outsourcing. The firm has entered the death spiral. Activity-Based Costing Case: Destin Brass Products Co. Case Description: A specialized manufacturer of brass valves, pumps, and flow controllers is troubled by competitive pricing in pumps and higher than expected margins for flow controllers. Managers’ are increasingly questioning whether they know the true manufacturing
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ACCOUNTING 525: MANAGERIAL ACCOUNTING Winter Quarter 2003 INSTRUCTOR: Professor D. L. Jensen 428 Fisher Hall 292-2529 at office (Please leave recorded message; if I'm not in, I'll return your call.) jensen.7@osu.edu (I check my e-mail several times daily and will respond ASAP) OFFICE HOURS: By appointment or chance STUDENT ASSISTANT: Ms. Yun Jin (jin.81@osu.edu) REQUIRED TEXT AND SUPPLEMENTARY MATERIALS: Horngren, Foster and Datar, Cost Accounting: A Managerial Emphasis, 11th edition
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HARVARD BUSINESS I SCHOOL 9 - 10 1-09 2 REV: AUGUST S, 2003 ROBERT S. KAPL AN Wilkerson Cotnpany The decline in our profits has become intolerable. The severe p rice cutting in pumps has dropped ou r pre-tax margin to less than 3%, far below our historicallO margins. Fortunately, % our competitors are overlooking the opportunities for profit in flow controllers. Our recent 10% price increase in tha t line has been implemented without losing any business. Robert Parker, presiden
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