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Managerial Accounting

Professor Bala Balachandran


John Deere Component Works (A)
Assigned Questions:
! What are the strengths and "eaknesses of the e#isting cost s$stems used at
JDCW%
&! What caused this s$stem to fail% What are the s$mptoms of cost s$stem failure%
'! (o" "ere the limitations of the e#isting cost s$stem o)ercome *$ the ABC
s$stem%
+! Compare the cost of product (A,') (see -#hi*it .) under the e#isting cost s$stem
and under the ABC approach!