This is a solution for Kanthal (Harvard Business Case Study)

Kanthal Case Study Solutions INTRODUCTION: Kanthal is smart set that specializes in the harvestion and gross revenue of electrical resistance thaw elements. Kanthal has roughly 10,000 customers and they produce round 15,000 items. The company consists of tierce divisions and these three divisions are as follows: 1)Kanthal thawing plant Technology - 25% orbicular market share 2)Kanthal Furnace Products - 40% global market share 3)Kanthal Bimetals - manufacturer of one of the few fully combine temperature control devices Mr. Ridderstrale, who became the president of the company in 1985, substantial and implemented a plan that has knotty completely changing and over-hauling their preexist handed-down cost system. The parvenu plan has been installed with the hopes that it will stomach to a greater completion accurate information or so their manufacturing cost structure, as advantageously as the be of furnish individual customers and orders. With this new information, Kanthal plans to place its resources to customers with hidden profits and compact efforts that are focused on customers with hidden losses. The ultimate nominate for this system change is to lead off higher growth and profitability. PROBLEMS, ANSWERS & antiophthalmic factor; SOLUTIONS: Question 1: Why have trade administrative cost non traditionally been traced to individual point of intersections and customers?

Answer 1: below the old cost system, Kanthal focus felt that selling and political science costs were fixed costs, and as a result they could not be changed, manipulated, or employ to influence growth or profitability. Traditionally, Kanthal had considered S&E expenditures to be period costs and were expensed in that manner sort of than allocating them to the various product lines and customers. below the old system, management failed to collect that some of their customers placed sound demands on the organization term others did not. Therefore, no attempts were made to assign S&A costs to the customers or product lines. As a result, costs were spread... If you want to get a full essay, order it on our website: Orderessay

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