Siemens Electric Motor Works (A): Process-Oriented Costing Harvard Case Solution & Analysis

Examines the cost of the system can help support a firm's decision to change strategy. In the process, students are introduced to simple activity based cost system. Siemens electric motor runs is facing a more competitive environment, and therefore it was decided to move from mass production of special engines for small batch custom engines. By doing so, they found their old value system led to their poor decision-making. When you switch on a simple activity-based system more accurate product costs have been calculated, which helps to improve the performance division. "Hide
by Robin Cooper, Karen H. Wruck Source: Harvard Business School 8 pages. Publication Date: October 20, 1988. Prod. #: 189089-PDF-ENG

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