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Unformatted text preview: Summary of Key Learning Objectives for Class 4: Wilkerson & Cooperative Bank Cases These cases continue the theme of consequences of growth started with the Seligram case. Cost system design is used to align product and customer costing information with the competitive environment and the firms strategy. For this class (as opposed to a cost accounting course), the focus is on cost management that follows the provision of better cost accounting data. Key learning objectives include: 1. As in Seligram, in Wilkerson we see how traditional product costing systems fail to capture costs of product diversity and complexity that typically accompany firm growth. More mature products that are co-mingled with new, more innovative products, can become vulnerable to competition if crude costing systems inform pricing of products. 2. Review of activity-based costing. In these types of cost systems, overhead costs are first traced to activities --- similar to other two-stage systems (e.g., Seligram). Then costs of activities are activities --- similar to other two-stage systems (e....
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- Spring '12