Breeden Security Inc. (B) Harvard Case Solution & Analysis

Marlene Baer, ​​controller Breeden U.S. security, acknowledges that the grouping of all the overhead costs of production and distribution with their Breeden in the two products is not very accurate. It groups overhead activities and then distributes them to the two products. System resembles a simple activity-based costing system. It introduces the definition of activities, the cost of these measures, and the cost of computing products based on the use of their work. The revised cost of production vary considerably, and the analysis of what causes the differences is important for the detection of ABC, which can provide valuable information. In addition, at the end of the year, profit fell to the need to take care of the growing and increasingly complex packing and shipping activities. Baer defines a new type of activity (order processing), calculates the cost of the order, and begins to review data on the cost effectiveness and the development of data on customer profitability. Finding the high cost of processing each order, she now has every reason to work on the activities of the management system and the concept of customer profitability, making the process more efficient, and perhaps more friendly to the customer. This is the second in a series of two cases that can be used to study the evolution of the system cost. The main issues of the two cases are as follows: in the case (UV1778), the company uses traditional costing system. Key issues related to the break-even analysis and stockpiling effect on profits. For an introduction to the use of activity-based costing system cost allocation, so the company can evaluate both product and customer profitability. These two cases can be used in two classes, or together in one class. "Hide
by Brandt Allen Source: Darden School of Business 12 pages. Publication Date: June 16, 2009. Prod. #: UV1779-PDF-ENG

Breeden Security Inc. (B) Case Solution Other Similar Case Solutions like

Breeden Security Inc. (B)

Share This