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Essay text:
costs) of customers and orders. He feels that if the company is able to tie costs o customers in an accurate manner, it will enable the company to better focus on higher profitability.
Major Issues:
Understand the cost structure of the company.
Allocate costs on a per customer and per order basis.
Implement a new cost system that will support the new cost allocation methodology.
Improve decision making on customers and sales orders based on the information provided by the new system.
2. Case Questions
2.1. What was the president trying to accomplish?
Basically, the president was trying to accomplish a move from a traditional cost accounting system to a new, ABC accounting system...
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