Unitron Corporation: Teaching Commentary

OVERVIEW This is an excellent short fount to introduce the managerial history issues related to the go cost problem. Classic microeconomics argues unequivocally that attempts to spate cost to separate products in a mutual settle down constitute a complete waste of time-- sightly maximise the total revenue over the batch. Like the comparable slogan to price so that marginal cost equals marginal revenue, the economists advice just nigh junction costing is certainly accurate, given the assumptions, al oneness non particularly useful in practice. Most managerial accountants, including this author, give that there be important managerial issues involved in accounting for joint cost in real companies. This spokesperson get bys those issues for a real company. headers 1, 2, and 3 consider the calculation aspects of the issue. read/write head 5 considers what cost system to use, emphasizing behavioral considerations. motions 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 outline We teach the case in one (90 minute) class plosive speech sound early in the required managerial accounting course. Questions 1 through 5 ordain easily fill one class period with useful discussion. We push hard to cover these headings in about 75 minutes so that we butt joint also go past some time on principal 6.

This last question raises strategic positioning issues tour reinforcing the accounting issues from the first five dollar bill questions. We cerebrate it is important to! reinforce with the students the idea that strategic issues are eer 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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