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Promotions Manufacturing: Production Unit Expenses and Profitability

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Based in the Canadian Prairies, Promotions Manufacturing had been manufacturing promotional items for over 40 years. The organizational structure consisted of four manufacturing units and the administration department, each with its own distinctive staffing needs and cost structure; consequently, profitability calculations and operations management had become increasingly difficult. In June 2018, the question of how to allocate the overhead and administration costs to each manufacturing unit became a pressing concern. The different cost allocation methods resulted in diverse profitability levels. Subsequently, decision-making with regard to production priorities, operation scheduling, and staffing needs had become unsystematic, often resulting in missed deadlines and disappointed customers. The general manager had to make a decision: which cost allocation method would offer the most accurate profit centre profitability, provide guidelines in reorganizing operations, and result in higher efficiencies? Laszlo Markovics is affiliated with Booth University College.

【書誌情報】

ページ数:9ページ

サイズ:A4

商品番号:HBSP-W20536

発行日:2020/6/26

登録日:2021/2/19

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