Gifts easy introduction at a controlled activity-based costing (ABC), which allows students to build a simple model of the ABC order profitability. Time managed Midwest ABC approach is based on two categories of parameter estimates. First, the price per hour of employees performing various tasks, such as order entry operators and delivery personnel performing desktop delivery.
The second estimated time required for employees to perform each task type (manual versus electronic orders, close against the distant deliveries). Students apply a time controlled models ABC-five orders of a representative to assess the cost-effectiveness is based on a much more accurate picture of the cost of processing and delivery of orders. Stimulates discussion of actions, such as pricing and process improvements, increasing the profitability of orders, as well as how to communicate and manage the cost of unused capacity. Rewritten version of the previous case. "Hide
by Robert S. Kaplan Source: Harvard Business School 4 pages. Publication Date: Mar 02, 2004. Prod. #: 104073-PDF-ENG