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

Kanthal Case Study Solutions INTRODUCTION: Kanthal is company that specializes in the harvestion and consummate(a) revenue of electrical resistance heating elements. Kanthal has roughly 10,000 customers and they obtain about 15,000 items. The company consists of three divisions and these three divisions are as follows: 1)Kanthal heating designingt Technology - 25% orbicular merchandise share 2)Kanthal Furnace Products - 40% global market share 3)Kanthal Bimetals - maker of one of the few fully combine temperature control devices Mr. Ridderstrale, who became the electric chair of the company in 1985, developed and implemented a plan that has involved completely changing and over-hauling their pre-existing handed-down price system. The cutting plan has been installed with the hopes that it will provide to a great extent accurate information about their manufacturing cost structure, as considerably as the be of supplying individual customers and severalize s. With this new information, Kanthal plans to direct its resources to customers with hidden profits and reduce efforts that are pore on customers with hidden losses. The ultimate purpose for this system reassign is to get higher growth and profitability. PROBLEMS, ANSWERS & angstrom unit; SOLUTIONS: Question 1: Why have marketing administrative cost non traditionally been traced to individual products and customers?

Answer 1: below the old costs system, Kanthal attention felt that selling and governing costs were quick-frozen costs, and as a result they could not be changed, manipulated, or utilized t o influence growth or profitability. Tradit! ionally, Kanthal had considered S& axerophthol;E expenditures to be period costs and were expensed in that way of life rather than allocating them to the various product lines and customers. Under the old system, management failed to realize that some of their customers placed grueling demands on the ecesis while others did not. Therefore, no attempts were made to allocate 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: OrderCustomPaper.com

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