Kanthal Case Executive Summary Over the years Kanthal has used its traditional accounting management system to cost its products. In 1985‚ when Carl-Erik Ridderstrale became president he developed the Kanthal 90 plan to increase overall profitability. He quickly recognized that in order to implement this plan a new account management system was needed to supplement the new strategy. In lieu of this need a new account management system was devised. Under the new cost system‚ two broad sources
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Background Kanthal is one of the few manufacturers in the world offers multiple products among the market and three divisions gain an advantageous position in market and substantial growth. It operates in a global competitive environment because it is manufacturing facilities and the target market both face to the global as exportation make up 95% of total sales. However‚ its sales growth slow in matured market like Europe and the USA while rapid growth can be seen in the developing countries. Under
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Background Kanthal is a an Swedish company which is specializes in productions and sales of electrical resistance heating elements. The company produced 15000 items to about 10000 customers. Most of the sales revenue are come from outside of Sweden‚ about 95% in total revenue. There are three divisions in the company : 1. Kanthal Heating Technology‚ generate 25% global market share. 2. Kanthal Furnace Products‚ generate 40% global market share 3. Kanthal Bimetals‚ one of the few
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Kanthal Case Study Solutions INTRODUCTION:Kanthal is company that specializes in the production a nd sales of electrical resistance heating elements. Kanthal has about 10‚000 customers and they pro duce about 15‚000 items. The company consists of three divisions and these three divisions are as f ollows:1)Kanthal Heating Technology - 25% global market share2)Kanthal Furnace Products - 40% global market share3)Kanthal Bimetals - Manufacturer of one of the few fully integrated temperat ure
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Kanthal Write-up Agenda • Background and Contest • Kanthal SWOT Analysis • Kanthal 90 Account Management System • Kanthal 90 AMS limits and improvements 2 Write-up Agenda • Background and Contest • Kanthal SWOT Analysis • Kanthal 90 Account Management System • Kanthal 90 AMS limits and improvements 3 Background and Context: Kanthal’s situation • Kanthal was founded in 17th century‚ specialized in the production and sales of
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hidden costs in each order. Further‚ he believed that Kanthal had low profit and high profit customers depending on the demands that the customer placed on the administrative and sales staff. Under the old cost system: Ridderstale was also concerned that selling and administrative expenses formed the largest cost category in the company and were growing. They accounted for 34% of total expenses and were treated as period costs rather than allocated to either products or customers. Cost of Product
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through the Kanthal 90 plan. The Kanthal 90 will provide a new costing structure and environment that will allow the company and employess to determining where the actual profit or loss is hidden within the orders. With more accurate costing‚ management will have the tools to identify the best selling situations and determine the best placement of employees to generate the greatest profits and growth for Kanthal. As mentioned earlier‚ our current costing system treats most production costs and selling
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Kanthal Case Study Solutions INTRODUCTION: Kanthal is company that specializes in the production and sales of electrical resistance heating elements. Kanthal has about 10‚000 customers and they produce about 15‚000 items. The company consists of three divisions and these three divisions are as follows: 1)Kanthal Heating Technology - 25% global market share 2)Kanthal Furnace Products - 40% global market share 3)Kanthal Bimetals - Manufacturer of one of the few fully integrated temperature control
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Was the existing system adequate in the past? Why or why not? Why is it no longer adequate? The existing system was adequate in the past due to heavy reliance on direct labor hours. The ETO served as a central cost center‚ and transferred the costs to other divisions at direct costs plus allocated burden. Being in the late 1970s and early 1980s‚ technology testing of components required fewer cycles‚ and less complicated structures. Hence‚ such testing on products could be carried out by direct
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Part A 1) The & 4 million offer is “ Relevant ” financial information Because of : important cost will be cost will happen just if the strategy is attempted‚ it can be kept away from by systems for breaking down cost information for basic leadership purposes ( Opportunity Cost ); it is just money costs that is pertinent ‚ opportunity costs along these lines speak to the cost of chances inescapable because of making one course of move ‚ there are as significant as some other expenses
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