Case Map for Horngren, Foster & Datar: Cost Accounting - Harvard ...

Length: 17p
Teaching Note: 198078
Wilkerson Co.: Robert S.
Kaplan
Product #: 101092
Length: 4p
Teaching Note: 104002
Kanthal (A) : Robert S. Kaplan
Product #: 190002
Length: 13p
Teaching Note: 190115
Chapter 6: Master Budget and
Responsibility Accounting
Cafes Monte Bianco: Building a
Profit Plan: Robert L. Simons,
Antonio Davila
Product #: 198088
Length: 8p
Teaching Note: 101044
Walker and Company: Profit
Plan Decisions: Robert L.
Simons, Ramsey Walker
Product #: 197084
Length: 12p
Teaching Note: 100005
broadening its customer base and increasing the range of products
and services offered. It turns to activity-based costing as part of its
reengineering effort to learn more about the process and product costs
and customer profitability, and contemplates what actions to take
based on this new information.
Subjects Covered: Activity-based costing; Cost accounting; Cost
analysis; Cost systems; Management accounting
The president of Wilkerson, faced with declining profits, is struggling to
understand why the company is encountering severe price competition
on one product line while able to raise prices without competitive
response on another product line. The controller proposes that the
company develop an activity-based cost model to understand better
the different demands that each product line makes on the
organization's indirect and support resources.
Learning Objective: Students estimate the new cost model, which
provides a radically different perspective on product line profitability.
They can suggest actions, based on the new cost model, to improve
the company's profitability.
Multinational company needs an improved cost system to determine
the profitability of individual customer orders. Its strategy is to have
significant sales and profitability growth without adding additional
administrative and support people. The new cost system assesses a
charge to each customer order received and an additional surcharge if
the item ordered is not normally stocked. The goal is to direct sales
resources to the most profitable customers: those who buy standard
products in large predictable quantities with minimal demands on
technical resources.
Subjects Covered: Cost accounting; Cost allocation; Cost systems;
Customer relationship management; Management accounting; Sales
strategy
Abstract
Using an income statement, balance sheet, and projected demand
and cost schedules, students are required to build a profit plan for a
closely-held coffee manufacturer in Italy. Students must estimate cash
flow and ROE and use this analysis to evaluate the attractiveness of a
new strategy.
Subjects Covered: Performance measurement; Planning systems;
Profit planning; Profitability analysis; Return on investment
Ramsey Walker, a second-year MBA student, must decide how to
control a family business as an absentee owner. After providing
background details on the publishing industry, the case requires the
reader to: 1) make a product segmentation decision; 2) prepare a
profit plan; 3) calculate free cash flow effects; 4) determine key
accounting performance measures; and 5) assess new control
systems and their implementation.
Subjects Covered: Control systems; Market segmentation; Profit
planning; Profitability analysis; Return on investment