Unitron Corporation: Teaching Commentary

OVERVIEW This is an excellent short fount to introduce the managerial write up issues related to the go cost problem. Classic microeconomics argues unequivocally that attempts to put together cost to separate products in a give voice fabricate constitute a complete waste of time-- undecomposed maximize the total revenue over the batch. Like the comparable truism to price so that marginal cost equals marginal revenue, the economists advice just nigh interchangeable costing is certainly accurate, given the assumptions, precisely non particularly useful in practice. Most managerial accountants, including this author, charge that there be important managerial issues involved in accounting for joint cost in real companies. This instance spread overs those issues for a real company. headers 1, 2, and 3 consider the calculation aspects of the issue. spindle 5 considers what cost system to use, emphasizing behavioral considerations. marvels 3 and 4 address decision making under joint costing--how to think about cost when trying to maximize profit. Question 6 blends cost analysis and strategic positioning in a cost plus contracting situation. TEACHING strategy We teach the case in mavin (90 minute) class block early in the required managerial accounting course. Questions 1 through 5 forget easily fill one class period with useful discussion. We push hard to cover these headings in about 75 minutes so that we elicit also go past some time on principal 6. This last question raises strategic positioning issues epoch reinforcing the accounting issues from the first five dollar bill questions. We bank it is important to reinforce with the students the idea that strategic issues are eternally relevant to the managerial accounting issues, even in the joint cost context. The defense contracting setting for question 6 heightens the costing dilemma--the assignment of joint cost to individual products is not supposed to be use ful for decision-making, but the disposal w! ill only accept a cost-based... If you want to trance a full essay, order it on our website: BestEssayCheap.com

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