Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 30 March 1999
Length: 14 pages
Data source: Field research
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Abstract
A privately owned German power tool company was dissatisfied with its existing cost system. The system could not produce timely accurate reports on cost center operations, and newly purchased automated machines were attracting large overhead costs. A new, highly automated system was designed and installed that used 600 cost centers and an appropriate activity base chosen for each center. The case shows the design of a highly accurate cost control system with flexible budgets used in both support and production cost centers.
Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 19 May 1999
Length: 6 pages
About
Abstract
A privately owned German power tool company was dissatisfied with its existing cost system. The system could not produce timely accurate reports on cost center operations, and newly purchased automated machines were attracting large overhead costs. A new, highly automated system was designed and installed that used 600 cost centers and an appropriate activity base chosen for each center. The case shows the design of a highly accurate cost control system with flexible budgets used in both support and production cost centers.
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Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 19 May 1999
Length: 6 pages