Ivey Publishing
Berendsen Island
Product Number:
9B15B012
Publication Date:
09/17/2015
Revised Date:
09/10/2015
Length:
6 pages (4 pages of text)
Product Type:
Case (Field)
Source:
Vlerick/Ivey
Berendsen Island, an outsourced workwear service, uses the standard costing model to determine its profitability. Because the company recently reported a loss, the plant manager and the business controller investigate time-driven activity-based costing in an effort to gain insights into its cost structures. The company also needs to provide a quote to two potential new customers.
Learning Objective:
Students will build a time-driven activity-based costing (TDABC) model, discuss the results, recommend strategies for pricing negotiations and gain a familiarity with activity-based budgeting. The case is divided into three parts: (A) a cost-to-serve module that illustrates how to build a TDABC model; (B) a pricing and negotiations module that demonstrates the usefulness of TDABC and the implications for the company of the entrance of new customers and (C) a module that applies TDABC for budgeting purposes.
Issues:
Disciplines:
Accounting,  International
Industries:
Other Services
Setting:
Iceland, Large, 2014-2015
Intended Audience:
MBA/Postgraduate
Price:
$4.25 CAD / $4.25 USD Printed Copy
$3.75 CAD / $3.75 USD Permissions
$3.75 CAD / $3.75 USD Digital Download
Associated Materials
Supplements: 7B15B012 (98 KB)
Translations: Simplified Chinese (6 pages)
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