Shun Electronics Company Case Solution

Posted by markwahl barg on August 2nd, 2018

Shun Electronics Company Case Solution

Case Solution

Manjit Singh essentially transformed the accounting system from the inventory and managed to get a bit more complex and accurate. Instead of the present inventory costing method, he used activity based costing method. The main impact from the alternation in using the accounting technique is the main difference within the allocation from the expenses towards the inventory. The present approach to inventory costing used direct labor and material like a driver for that allocation from the expenses. Expenses range from the following products whose costs can't be tracked straight to the inventory item created also it needs to be allotted according to some driver, that are direct labor and material within this case.

Excel Calculations

Questions Covered

1. Where did the figures in exhibit 1, 2, and 3 come from, and how were they computed?

2. To date, the shelf-showers radios were thought to cost M.00. Manjit Singh says that M.56 is the accurate cost. Why the difference in the cost numbers?

 

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markwahl barg
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