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Kanthal

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Issue:

Business

 

Written by:

John B

 

Date added:

May 20, 2015

 

Level:

University

 

Grade:

A

 

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4 / 865

 

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costs) of customers and orders. He feels that if the company is able to tie costs o customers in an accurate manner, it will enable the company to better focus on higher profitability. Major Issues: Understand the cost structure of the company. Allocate costs on a per customer and per order basis...
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Case Questions 2.1. What was the president trying to accomplish? Basically, the president was trying to accomplish a move from a traditional cost accounting system to a new, ABC accounting system. This, in order to identify what are the true costs of each customer and each order, enabling the company to fully understand its cost structure thereby providing the base for better business choices (and higher profitability)...
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