Class+3+Learning+Objectives

Class+3+Learning+Objectives - Summary of Key Learning...

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Summary of Key Learning Objectives for Class 3: Seligram Case The Seligram case provides an example of how traditional cost systems that meet financial accounting needs for inventory valuation, fail in dynamic competitive environments characterized by rapid growth, technological change, and market fragmentation with associated product customization. The case introduces cost system design as a mechanism for better aligning cost information with the firm’s competitive strategy, but reveals remaining limitations. Key learning objectives include: 1. Gaining an understanding of how traditional cost systems may become obsolete and produce misleading data as a result of: - Changes in process technology - Changes in product mix - Changes in the economics of production (e.g., mix of capital, labor, and material employed) - Changes in the firm’s competitive strategy 2. Recognizing that a critical source of product cost distortions is the assumption that resource usage will be reflected in changes of an often unrelated or arbitrary allocation basis (i.e., direct labor
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This note was uploaded on 04/05/2012 for the course MGT ` 170 taught by Professor Andersen during the Spring '12 term at UC Davis.

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