Unitron Corporation: Teaching Commentary

OVERVIEW This is an excellent short fount to introduce the managerial news report issues related to the go cost problem. Classic microeconomics argues unequivocally that attempts to begin cost to separate products in a peg conciliate constitute a complete waste of time-- full maximize the total revenue over the batch. Like the comparable guide word to price so that marginal cost equals marginal revenue, the economists advice just nigh knock costing is certainly accurate, given the assumptions, scarcely non particularly useful in practice. Most managerial accountants, including this author, dedicate that there be important managerial issues involved in accounting for joint cost in real companies. This proxy spread overs those issues for a real company. headers 1, 2, and 3 consider the calculation aspects of the issue. pass 5 considers what cost system to use, emphasizing behavioral considerations. enquires 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 dodge We teach the case in mavin (90 minute) class stay early in the required managerial accounting course. Questions 1 through 5 pass on easily fill one class period with useful discussion. We push hard to cover these headings in about 75 minutes so that we kindle also go past some time on principal 6.

This last question raises strategic positioning issues plot of ground reinforcing the accounting issues from the first five dollar bil l questions. We suppose it is important to! reinforce with the students the idea that strategic issues are ceaselessly 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 non supposed to be useful for decision-making, but the disposal will only accept a cost-based... If you want to trance a full essay, order it on our website: BestEssayCheap.com

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