OVERVIEW This heavily disguised case is very rich in cost analysis opportunities with a strong strategic dimension. We use it as the first case in a segment on cost system design in the required Managerial Accounting course at Tuck. The setting is 1986 in a German manufacturer of snap fasteners (for garments) and of the machines which attach the fastener to garments. This is a classic example of a "bundled business"--the company's strategy is to …
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showed last 75 words of 3822 total
…amp;gt;Discuss recommendations for management action based on the "better" cost information from Question 4. This part draws on Questions 5, 6, and 7. Our goal in the 90-minute class is about 30 minutes on each of the three parts. Usually, it is difficult for us to save 30 minutes for part 3. We believe it is important to save time for part 3 to show clearly that better cost information does lead at least to "better-informed" decisions, if not "better" decisions.