Summary of Key Learning Objectives for Kanthal and Cooperative Bank Cases The Kanthal Case extends previous lessons on cost system design to the analysis of selling, general and administrative expenses (SG&A), which typically fall outside of product costing systems and often cross organizational boundaries. In previous classes we considered products and processes as cost objects, we limited our analysis to “hard” costs found in the traditional cost system, and we confined our analysis to the costs incurred in a fiscal year. In this class, Kanthal and Cooperative Bank introduce customers and distribution channels as cost objects and we consider the relevance of “soft” costs (e.g., opportunity costs) and extended costing horizons (e.g., lifecycle costs of products and customers) to many management decisions. Key learning objectives include: 1. The application of ABC concepts to SG&A Costs. Traditionally SGA has been a period expense not a product cost. With increasingly diverse customer demands, SG&A costs have escalated. If
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