Destin brass products co case study essay

More Essay Examples on Cost Rubric 2. Compare the estimated costs you calculate to existing standard unit cost Exhibit 3 and the revised unit cost Exhibit 4.

Destin brass products co case study essay

How to Write a Summary of an Article? Destin Brass Products Co. This paper will exemplify the recommended solutions for the direction of the company that are seeking to measure the competitory tendencies of the market for the mentioned merchandises, and seeking to get down new schemes to cover with these tendencies.

We will write a custom essay sample on Destin Brass Products Co. The high fight of market requires that all types of concerns have a comprehensive apprehension to the costs and net incomes in much item in order to ease determination doing procedure. In Destin Brass instance, the company tried to set up a high trade name name for bring forthing the valves, but subsequently as an enlargement to the concern, the company included two new merchandise lines which are the pumps and the flow accountants maintaining in head the similarities of productions and the handiness of the productions capacity.

Destin Brass did non hold a distinguished rival in the valves market because of the high quality of the valves produced, but there is a monolithic competition in the pump and flow accountants market.

The direction is in demand to reconsider its fiscal scheme in order to face competition. The fiscal analysis After measuring the current fiscal state of affairs of Destin Brass, The analysis hereby will join forces to reply the direction inquiries, and illustrations of the below solutions had been used by concern and it proved to hold an influence of determination devising procedure sing the company scheme.

The solutions are as follows: Merchandise costs as per the ABC information From the given information in the instance survey, there is a connexion between the merchandises costs and the costs incurred by the activities related to the productions of each merchandise line. The reply to this issue is to fix cost estimations for the three merchandises by using the necessities of the activity based costing, table 1 shows that the ABC costs of the valves is The ABC method attempts to link the indirect costs to the merchandises, and accordingly handle them as direct costs.

Based on the instance analyze fiscal information, the computations in table 1 have been prepared by utilizing the followers: Making a cost pool for the machine depreciation and care cost, and apportion the merchandises based on machine hours. Making a cost pool for having and material handling costs by ciphering the figure of minutess consumed for every merchandise.

Making a cost pool for technology costs by ciphering how much technology is consumed by each merchandise. Comparing the ABC with the criterion and the revised unit costs In this comparing, it will look the cost of each merchandise under the three types of bing computation methods and the ground why they are different.

Table 2 shows the comparing. The three bing methods dainty direct costs which are run labour and stuff, in the same manner.

Furthermore, fiscal experts support the thought that direct costs is non the existent job as this can be tracked to the merchandise, but the issue is that bing computations gets complicated when seeking to apportion the operating expenses Indirect costs.

Destin brass products co case study essay

The allotment of operating expenses is where the differences in costs come under the three bing methods. In the criterion cost accounting there is no attempt made to track the operating expense costs to the merchandises.

Consequently, every merchandise is allocated a per centum of the operating expenses in the same ratio that the merchandise consume of labor valves 0.

See table 3 for inside informations. The revised cost accounting makes portion of the indirect costs as direct. The stuff and handling costs are treated in a separate manner, but non the best cost driver had been chosen direct stuff dollarsas it would be seen in the ABC.

Furthermore, setup labor is assigned straight based on the apparatus hours for which information is available. The staying operating expenses are allocated on the footing of machine hours. As mentioned by Peggy Alford, this gives an thought why rivals are cutting monetary values on pumps. It is now clear that costs of the pumps is overstated utilizing the criterion bing method while the costs of the valves are unostentatious.


The ABC method paths every bit much as possible of the indirect disbursals of the merchandises and services.´╗┐Destin Brass Products Co.

Case Study Destin Brass Products Co. has been established and grown to produce valves (24% of the company revenue), pumps (55% of the company revenue), and flow controllers (21% of the company revenue).

Destin Brass Products Co. has been established and grown to bring forth valves (24 % of the company gross), pumps (55 % of the company gross), and flow accountants (21 % of the company gross). Established in , Destin Brass Products Co.


had grown to become a significant player in the industry of manufacturing water purification equipment. By identifying a market for water purification valves, Destin Brass quickly built brand awareness and a customer base.

Background Destin brass products co. Destin Brass Products is a manufacturing company specialized in brass products started in Destin, Florida, , running by Roland Guidry (president), Peggy Alford (controller), John Scott, (manufacturing manager) and .

Destin Brass Essay. 1 - Destin Brass Essay introduction. Use the Overhead Cost Activity Analysis in Exhibit 5 and other data on manufacturing costs to estimate product cost . Destin Brass Products Co. Case Study Published: October 29, Destin Brass Products Co.

has been established and grown to produce valves (24% of the company revenue), pumps (55% of the company revenue), and flow controllers (21% of the company revenue).

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