KL Radio Shun Electronics, division wants to expand the three departmental cost centers to eight, each with its own rate of cost allocation overhead. As a result, it was found that the total cost of four of the six stations will be increased, while two will be reduced. The case puts students in the role in order to (a) understand why this outcome has not occurred, and (b) explain the specific changes in the distribution of costs, and (c) to assess whether these changes are for the better.
This Darden study. "Hide
by Mark E. Haskins Source: Darden School of Business 7 pages. Publication Date: February 2, 2004. Prod. #: UV0233-PDF-ENG
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