Examines the cost of the system can help support a firm's decision to change strategy. In the process, students are introduced to simple activity based cost system. Siemens electric motor runs is facing a more competitive environment, and therefore it was decided to move from mass production of special engines for small batch custom engines. By doing so, they found their old value system led to their poor decision-making. When you switch on a simple activity-based system more accurate product costs have been calculated, which helps to improve the performance division. "Hide
by Robert S. Kaplan Source: Harvard Business School 7 pages. Publication Date: July 5, 1990. Prod. #: 191006-PDF-ENG
Related Case Solutions & Analyses:
Boeing 777
Teaching Notes: Communicating the Teachers Wisdom
FCB and Publicis (A): Forming the Alliance
Kronos (B)
Arbitrage in the Government Bond Market
Julia Stasch (B)
Betting Private Capital on Fixing Public Ills: Instiglio Brings Social Impact Bonds to Colombia
Incredible India: Evolution of Brand India
Tesco PLC: Strategy for India
From Patrimonio Hoy to Arte en Concreto: Tailoring a Social Responsibility Program at CEMEX Puerto Rico
