Monroe Clock Company (B)
5 Pages Posted: 21 Oct 2008
Monroe Clock Company, a producer of electrical timers, is trying to decide how to price a new device by considering the method of overhead allocation and its impact on the cost of the household timer. The B case can be taught independently or in conjunction with the A case (UVA-C-2228), which considers variable versus fixed costs, the relevance of certain costs, and information regarding capacity utilization.
Keywords: cost accounting, cost behavior
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