Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 25 March 1999
Length: 4 pages
Data source: Field research
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Abstract
Mayers Tap, Inc has decided to redesign its cost system. In this case it uses three different cost center designs to determine how the new system should be designed. Students are asked to drop unprofitable products under the three scenarios and explain the effects on the income statements. The teaching objectives are to demonstrate to students that the selection of cost centers is critical to the generation of accurate standard costs.
Location:
Industry:
Size:
Small, USD10 million sales
Other setting(s):
1984
About
Abstract
Mayers Tap, Inc has decided to redesign its cost system. In this case it uses three different cost center designs to determine how the new system should be designed. Students are asked to drop unprofitable products under the three scenarios and explain the effects on the income statements. The teaching objectives are to demonstrate to students that the selection of cost centers is critical to the generation of accurate standard costs.
Settings
Location:
Industry:
Size:
Small, USD10 million sales
Other setting(s):
1984