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

Kanthal Case Study Solutions INTRODUCTION: Kanthal is company that specializes in the harvestion and rough revenue of electrical resistance heating elements. Kanthal has roughly 10,000 customers and they invoke about 15,000 items. The company consists of three divisions and these three divisions are as follows: 1)Kanthal heating imaget Technology - 25% orbicular market place share 2)Kanthal Furnace Products - 40% global market share 3)Kanthal Bimetals - manufacturer of one of the few fully combine temperature control devices Mr. Ridderstrale, who became the chairperson of the company in 1985, developed and implemented a plan that has involved completely changing and over-hauling their pre-existing handed-down personify system. The impudently 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 fellowship s. With this new information, Kanthal plans to direct its resources to customers with hidden profits and reduce efforts that are rivet on customers with hidden losses. The ultimate purpose for this system modification is to get higher growth and profitability. PROBLEMS, ANSWERS & group A; 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 focussing felt that selling and governing costs were laid costs, and as a result they could not be changed, manipulated, or utilized to influen ce growth or profitability. Traditionally, ! Kanthal had considered S& adenine;E expenditures to be period costs and were expensed in that mood 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 giving medication 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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