The Classic Pen Company: Developing an ABC Model

The Classic Pen Company: Developing an ABC Model

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The Classic Pen Company: Developing an ABC Model\n\n1. Calculate the revised product costs for the four pens, based on the activity information collected by Dempsey.\n\n2. What actions are stimulated by the ABC product costs?\n\n3. What are the managerial implications of your revised cost estimates?\n\n4. How would you handle the find of some unrecorded resource expenses added to the model, like $5,000 for inspectors to perform quality inspections at the start of each new production run to ensure the new color meets specifications?\n\nThe presentation should include a Power Point which addresses the following: \n1. Present a brief summary of the case. Try to limit to one slide. \n2. Present the definitions of the key managerial terms included in the case. Try to limit to one slide. \n3. Address the questions on specific to your case. At least one slide per question.\n4. Present a conclusion of the issues addressed. Try to limit to one slide. \n5. Presentation should be approximately 30 minutes.\n6. All slides in the presentation should be accompanied with speaker’s notes for me.\n7. Use this source for the case: Cooper, R. and R. S. Kaplan. (1999) The Design of Cost Management Systems 2e. Prentice-Hall, [ISBN: 0130839051] or [ISBN: 9780130839053]

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