Breeden Electronics USA is a start up office of a German business. The division president, Herman Klein, has requested his controller, Marlene Baer, to compute several breakeven sales amounts as they assess the sales level that is crucial to match the profit target established by the parent company. Baer must run several break-even analyses and contemplate the impact on gain if production exceeds sales. This is the first in a series of two cases that can be used to explore the development of cost systems.
The main dilemmas of both cases are as follows: in the A case, a conventional costing system is used by the company. The chief questions relate to breakeven the effect of inventory buildup and analysis on profit. The B case (UV1779) introduces the use of an activity-based costing system to allocate prices so that the business can assess both product and customer profitability. Both cases can be used in one class or together in two categories.
PUBLICATION DATE: June 19, 2009 PRODUCT #: UV1778-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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