Siemens Electric Motor Works (A) & (B)

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Supplement

Reference no. 9-190-052

Subject category: Finance, Accounting and Control

Authors: Rowena Cooper (QAS); Karen Hopper Wruck (Harvard Business School)

Published by: Harvard Business Publishing

Originally published in: 1989

Version: 27 December 1989

Length: 17 pages

Data source: Field research

Topics: Profit centers; Activity-based costing; Organizational structure; Transfer pricing; Cost allocation; Cost systems

Share a link: https://casecent.re/p/47138

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Abstract

Explores how a cost system can help support a firm's decision to change strategies. In the process, students are exposed to a simple activity- based cost system. Also examines Siemens policy for transferring products between sales and manufacturing divisions. Transfer pricing is based on standard costs generated from their cost system. The case is unique in that the organizational linkage between the product costing system and the transfer pricing system is explored.

Location:

Germany

Industry:

Manufacturing

Size:

DEM400 million revenues

Other setting(s):

1988