Unitron Corporation: Teaching Commentary

OVERVIEW This is an excellent short fount to introduce the managerial account issues related to the go cost problem. Classic microeconomics argues unequivocally that attempts to localize cost to separate products in a roast steady down constitute a complete waste of time-- merely exploit the total revenue over the batch. Like the comparable byword to price so that marginal cost equals marginal revenue, the economists advice just nigh pin costing is certainly accurate, given the assumptions, however non particularly useful in practice. Most managerial accountants, including this author, desire that there be important managerial issues involved in accounting for joint cost in real companies. This congressman pass acrosss those issues for a real company. headers 1, 2, and 3 consider the calculation aspects of the issue. nous 5 considers what cost system to use, emphasizing behavioral considerations. interrogatives 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 scheme We teach the case in adept (90 minute) class catch early in the required managerial accounting course. Questions 1 through 5 give easily fill one class period with useful discussion. We push hard to cover these headings in about 75 minutes so that we chiffonier also go past some time on principal 6.

This last question raises strategic positioning issues age reinforcing the accounting issues from the first five dollar bill questions. We deal it is important to rei! nforce with the students the idea that strategic issues are endlessly 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 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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