Product details

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Case
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Reference no. 9-190-002
Published by: Harvard Business Publishing
Originally published in: 1989
Version: 27 April 2001

Abstract

Multinational company needs an improved cost system to determine the profitability of individual customer orders. Its strategy is to have significant sales and profitability growth without adding additional administrative and support people. The new cost system assesses a charge to each customer order received and an additional surcharge if the item ordered is not normally stocked. The goal is to direct sales resources to the most profitable customers: those who buy standard products in large predictable quantities with minimal demands on technical resources.
Location:
Size:
USD160 million sales
Other setting(s):
1987

About

Abstract

Multinational company needs an improved cost system to determine the profitability of individual customer orders. Its strategy is to have significant sales and profitability growth without adding additional administrative and support people. The new cost system assesses a charge to each customer order received and an additional surcharge if the item ordered is not normally stocked. The goal is to direct sales resources to the most profitable customers: those who buy standard products in large predictable quantities with minimal demands on technical resources.

Settings

Location:
Size:
USD160 million sales
Other setting(s):
1987

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