The main purpose of this case, to provide students with the opportunity to practice simple realization value analysis (ABC) system. The students are invited to consider a number of possible allocation bases and set the best base from which you can distribute costs of administration of the plant. In addition, students must calculate and compare the traditional volume-based or direct labor plus direct materials based overhead allocation to the results of ABC - and then analyze which distribution method is the most appropriate for the situation in Zauner jewelry. This event also allows students to apply the managerial point of view, and use the results of the cost allocation to identify potential pricing strategy and cost management. "Hide
by Kristy Lilly, Liz Smith, Mark E. Haskins Source: Darden School of Business 9 pages. Publication Date: August 12, 2003. Prod. #: UV1708-PDF-ENG
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