Schulze Waxed Containers, Inc.

  • Reference: HBS-188134-E

  • Year: 1987

  • Number of pages: 17

  • Geographic Setting: United States

  • Publication Date: Apr 4, 1988

  • Fecha de edición: Jul 20, 1990

  • Source: HBSP (USA)

  • Type of Document: Case

  • Industry Setting: Paper

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Description

Schulze Waxed Containers has recently lost 20% of its business. The firm's cost accounting system spreads fixed costs over the volume produced. The 1987 costs reflect the lower production volume and are higher. The firm has recently adopted a minimum mark up. The result is increased minimum prices and lost business. The firm introduced a capacity-based cost system that identifies the cost of excess capacity. The case analyzes the design of this new cost system.

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Keywords

Capacity analysis Cost accounting Cost allocation Cost systems Manufacturing Pricing strategy Product information management systems Production