The controller proposes that the company develop an activitybased cost model to understand better the different demands that each product line makes on the organizations indirect and support resources. The business organization whose analysis is presented in this case is destin brass products company that is involved in the production and. Laxmi protein products case analysis, laxmi protein products case study solution, laxmi protein products xls file, laxmi protein products excel file, subjects covered marketing by saswata n. Destin brass products co case solution and analysis, hbr. Case study solution, a specialized manufacturer of brass valves, pumps and flow regulators concerned competitive pricing in pumps and higher than expected for the flow field co. What actions would you recommend to managers at destin brass products company. Has destin brass products adopted the most profitable distribution system in the flow controller market. Students need to submit a report, presented in proper report format including a reference list by the end of week 10. Case analysis 5p31 managerial accounting section 1 professor tashfeen. Aqualisa quartz case study pdf get expert help with aqualisa quartz case analysis, situational analysis, pricing analysis, customer analysis and many more. Valves comprise of24% of the company revenues, pump contains 55% and flow controllers account for 21% of the revenues. Question 1 use the overhead cost activity analysis. Abstract in the analysis we focus on the company destin brass, their competitors have been reducing the price and destin brass has not been able. Richard ivey school of business foundation 16 pages.
After a conversation with the president of a large water purification equipment manufacturer, abbott discovered an opportunity to produce high quality brass valves since the manufacturer was dissatisfied with the quality of brass valves currently available. The company uses three methods to compute the unit cost of each producttraditional cost method, revised cost method and activitybased cost method. Essay on destin brass case analysis 686 words 3 pages. Destin brass case analysis destin brass was first founded 1984 in destin, fl, with an expertise in high quality brass products. Destin is challenged with determining how best to allocate the overhead costs to each product due to varying levels of costs accrued by each product line.
Purchase and read the case study titled destin brass products co. A case for learning activitybased costing article pdf available in journal of business case studies 102. Question 1 use the overhead cost activity analysis in exhibit 5 and other data on manufacturing costs to estimate product costs for valves, pumps and flow controllers. High competition in the market requires the understanding of costs and profits. Jul 23, 2012 laxmi protein products case analysis, laxmi protein products case study solution, laxmi protein products xls file, laxmi protein products excel file, subjects covered marketing by saswata n. Background destin brass products company was founded by guidry, scott, and steve abbott, the current sales and marketing manager. Case solution, a specialized manufacturer of brass valves, pumps and flow controllers is troubled margins for flow controller higher than expected due to competitive pric. Students will read the destin brass products case study. Use the overhead cost activity analysis in exhibit 5 and other data on man factoring costs to estimate product costs for valves, pumps, and flow controllers q.
Solved 54125 assessment briefsubject code and name. Destinbrass destin brass products co case analysis 5p31. Assume that the interest in a new basis for cost accounting at destin brass products remains high. Case analysis of destin s brass products co group 6 valueadded analysis valueadded analysis the use of the standard unit costing system allows for the understanding of the measurement of product costs also met the needs for preparing financial reports and tax returns overhead. Two volumebased systems are described and illustrated. June 26, 2010 case analysis objectives the destin brass products company case analysis focuses on the current accounting practices utilized by the company and its effects on product pricing. The company started in 1984 used to manufacture only valves initially but started brass pumps and flow controllers because they required the same manufacturing skills. In destin brass case, the company tried to establish a high brand name for producing the valves, but later as an expansion to the business, the company included two new product lines which are the pumps and the flow controllers keeping in mind the similarities of productions and the availability of the productions capacity. As a supplier of water purification manufacturer, destin brass products focus on produce valves, pumps and flow controllers and occupied 24%, 55% and 21% of the companys total revenues respectively. Assistance needed in the destin brass case, for the exclusive use of l. Brass foundries are purchased from suppliers and are machined and assembled in the companys three product line. There also must be an incentive for these people to devote their time. Various kit sizes produce potable water from 45 to 87 litres an hour.
Jan 12, 2018 destin brass products case studysolution custom writing at its best high quality for reasonable prices. Estimated product costs for valves, pumps, and flow controllers 2. Destin brass was established in 1984 and have grown to produce valves, pumps and flow controllers. Destin brass products company case study wow essays. Destin brass products case study solution accounting. This paper will exemplify the recommended solutions for the direction of the company that are seeking to measure the competitory tendencies of the market for the mentioned merchandises, and. Use the overhead cost activity analysis in exhibit 5. Come browse our large digital warehouse of free sample essays. Nokia plans to concentrate on three established concern in the market segments where nsn is leader in web substructure and services. The company management is facing the question of whether cost accounting and cost allocations affect competitive pricing and causes different results. We provide academic writers for accounting case solutions harvard business school accounting case solutions harvard business school. Case analysis of destins brass products co group 6 valueadded analysis valueadded analysis the use of the standard unit costing system allows for the understanding of the measurement of product costs also met the needs for preparing financial reports and tax returns overhead. After evaluating the current financial situation of destin brass, the analysis hereby.
In destin brass case, the company tried to establish a high brand name for producing the valves, but later as an expansion to the business, the company included two new product lines which are the pumps and the flow controllers keeping in mind the similarities of productions and the availability of. What causes the three different costing methods to produce such different results in the unit cost. In the highly competitive, but mature, razor and blade market, gillette holds a commanding worldwide market share. Custom writing at its best high quality for reasonable prices.
When products or services are homogeneous, volume cost drivers are appropriate for allocating. Compare the estimated costs you calculate to existing standard unit cost exhibit 3 and the revised unit cost exhibit 4. Gillette has long been known for innovation in both product development and marketing strategy. This paper explains what causes the 3 different costing methods to produce different results. Item blackhawk urology case solution blade inc case solution blaine kitchenware case solut. Read this free business case study and other term papers, research papers and book reports. Available for ac 110220 volt and dc 12 and 24 volt.
Get the knowledge you need in order to pass your classes and more. View destinbrass from actg 2p40 at brock university. Buy books, tools, case studies, and articles on leadership, strategy, innovation, and other business. Essay on destin brass case analysis 686 words bartleby. Destin brass case outline labour economics cost accounting. Students will work in their groups to prepare a response to all of the case questions listed in the case study. A specialized manufacturer of brass valves, pumps, and flow controllers is troubled by competitive pricing in pumps and higher than expected margins for flow. Steve abott sensed opportunity in a conversation with the president of a large manufacturer of water purification equipment who was dissatisfied with the quality of brass valves available company. In addition to the bibliography of readings used in the course, see the readings by session below required text. Destin brass case study solution case study analysis. After measuring the current fiscal state of affairs of destin brass, the analysis hereby will join forces to reply the direction inquiries, and. Destin brass products co gross margin net income scribd.
Destin brass case outline free download as word doc. Feel free to contact us to get your case studies done. Destin brass question 1 we applied the abc costing method see appendix 1 for details and compared the calculated unit costs against the formerly used methods. Illustrates motivation and design for an activitybased cost system. Managers suspect that cost accounting and cost allocations to products may be to blame. Valves which are 24% of the revenue, pumps 55% of the revenue and flow controllers 21% of the revenue. Dec 07, 2017 destin brass manufactures three products. Wilkerson case study solution accounting case solutions. A specialized manufacturer of brass valves, pumps, and flow controllers is troubled by competitive pricing in pumps and higher than expected margins for flow controllers.
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