Mt

Each student needs to complete a case study write-up and submit by the due date following the submission requirements outlined in the course profile (and provided below).

Students need to address the following questions in their case study write-up for the Kanthal A case:

1. Describe the competitive environment in which Kanthal operates.

2. Describe in detail how the old cost system operates. Your answer should include a detailed description of how selling, general and administrative (S,G & A) costs are treated.

3. What is the opportunity faced by Kanthal in relation to reducing batch costs?

4. Describe in detail how the new cost system works. Your answer should include a detailed analysis of the calculations in Exhibit 5 and a description of the each of the steps and their importance in in the new cost system. Within each of the steps, the derivation of the separate line should be shown.

5. Calculate the profit on the following orders using information from Exhibit 5. The characteristics of the orders are:

* Order 1: Sales SEK2000, 1 order, In stock

* Order 2: Sales SEK2000, 1 order, Non Stock

* Order 3: Sales SEK160000, 3 orders, Non Stock

* Order 4: Sales SEK160000, 28 orders, 22 Non Stock

All of your calculations are to be derived from Exhibit 5. This includes Volume Costs, Order costs for Non-Stocked Products and Selling and Administrative Order Costs. What does a comparison of the orders show? From Exhibit 6 and Exhibit 7 provide an example which matches closely to the four orders above.

6. What are some action plans that Kanthal might pursue in response to information provided from the new cost system?

Case Write-up Requirements:

Your case write-up should consist of your individual response to each of the questions provided. These questions are aimed at directing your attention to the major problem and issues faced by the company and allow you to apply the concepts and principles covered in ACCT7107 to date to a real business. There is no requirement to answer more than what has been asked in these questions nor to prepare the write-up as a report, however, headings and sub-headings should be used within the answers to each questions to facilitate a good flow.

You are limited to 800 words (12 point font and minimum 1.5 line spacing). The case study will be graded according to your individual write-up.

Students are encouraged to follow the 'How to Prepare a Case Study' approach prepared by Sid Huff and Ron Weber provided as a handout in Week 1(also provided in the Lecture 1 Learning Materials on the course blackboard website).

Submission Requirements:

The submission requirements outlined in the course profile are provided below:

Submission: Students must submit their case write-up with completed BEL Faculty Assignment cover sheet by 4pm on Friday 2 September, 2011 to the BEL Faculty Collaborative Learning Centre (Level 1 Bldg 39).

Students should also note the new requirements for