Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 20 July 1990
Length: 17 pages
Data source: Field research
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Abstract
Schulze Waxed Containers has recently lost 20% of its business. The firm''s cost accounting system spreads fixed costs over the volume produced. The 1987 costs reflect the lower production volume and are higher. The firm has recently adopted a minimum mark up. The result is increased minimum prices and lost business. The firm introduced a capacity-based cost system that identifies the cost of excess capacity. The case analyzes the design of this new cost system.
Location:
Industry:
Size:
Small, USD25 million sales
Other setting(s):
1987
Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Length: 16 pages
About
Abstract
Schulze Waxed Containers has recently lost 20% of its business. The firm''s cost accounting system spreads fixed costs over the volume produced. The 1987 costs reflect the lower production volume and are higher. The firm has recently adopted a minimum mark up. The result is increased minimum prices and lost business. The firm introduced a capacity-based cost system that identifies the cost of excess capacity. The case analyzes the design of this new cost system.
Settings
Location:
Industry:
Size:
Small, USD25 million sales
Other setting(s):
1987
Related
Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Length: 16 pages