Siemens: Cost and Activity-based Costing Objectives

15. 514 Summer 2003 Session 17 Activity-Based Costing Objectives 1. enumeration of product cost using ABC 2. Understand the role of thinker how are cost pools and cost drivers determined? 3. Link cost entropy to strategic choices Game Plan & Class Pedagogy Case discussion. rendition Assignment CP Siemens Electric Motor Works Class education Questions Focus your groups attention on the qualitative questions (1 -6). search to answer questions 7 and 8 before coming to class, but move intot invest excessive time on this task, as we leave behind work through the computational issues together in class.Thinking astir(predicate) the issues and the costing approaches should take precedence over getting the right numbers. 1. What were the militant conditions facing EMW in the late 1970s? 2. What change in scheme did EMWs coachs undertake in response to these conditions? 3. How did EMWs new scheme change the way products were manufactured? 4. Describe the 1970s costing system at E MW. 5. Describe the 1980s costing system (PROKASTA) at EMW. 6.How do the two systems differ in their treatment of costs for order process and special components? 7. Calculate the cost of the five orders in Exhibit 4 under the tralatitious and PROKASTA cost systems. Hint first compute the PROKASTA costs of processing an order and handling a special component. 8. Compare traditional and PROKASTA costs for Motor A in Exhibit 4 if 1 unit, 10 units, 20 units, or 100 units are ordered. 9. If you were a manager at EMW, how might you use the new cost system to wreak better