Private German power tool company was dissatisfied with the existing system cost. The system can not make timely accurate reports on the activities of a cost center, and newly acquired machines attracted a large overhead. A new, highly automated system was designed and installed that used 600 cost centers and the corresponding base chosen for each activity center. Case shows, design high-precision control of costs with flexible budget used in both call centers and production costs. "Hide
by Robert S. Kaplan, Dagmar Bottenbruch Source: Harvard Business School 14 pages. Publication Date: March 27, 1989. Prod. #: 189146-PDF-ENG
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