costacctg13_sm_ch05

58 60697 363 total 7 58070 69465 127535 98580 226115

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Unformatted text preview: ort partners compared to associates. The Widnes Coal case also makes relat ively lower use of the support labor, computer time, travel, phones/faxes, and photocopying resource areas than does the St. Helen’s Glass case. 2. The specific areas where the mult iple direct/mult iple indirect (MD/MI) approach can provide better informat ion for decisions at Wigan Associates include: Pricing and product (case) emphasis decisions. In a bidding situat ion using single direct/single indirect (SD/SI) or mult iple direct/single indirect (MD/SI) data, Wigan may win bids for legal cases on which it will subsequent ly lo se money. It may also not win bids on which it would make mo ney wit h a lower­priced bid. From a strategic viewpo int, SD/SI or MD/SI exposes Wigan Associates to cherr y­picking by co mpetitors. Other law firms may focus exclusively o n Widnes Coal­t ype cases and take sizable amounts of “pro fitable” business fro m Wigan Associates. MD/MI reduces the likelihood of Wigan Associates losing cases on which it would...
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This note was uploaded on 10/11/2010 for the course ACCT 321 taught by Professor Cole during the Spring '10 term at University of Miami.

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