Shun Electronics Company

Darden Business Publishing Cases

ISSN: 2474-7890

Publication date: 20 January 2017

Abstract

The Shun Electronics KL Radio division wants to expand its three departmental cost centers to eight, each with its own overhead cost allocation rate. As a result, it appears that the total costs for four of its six radios will increase, while two will decrease. The case puts students in the role of having to (a) understand why such a result would occur; (b) explain the specific changes made in the cost allocation system; and (c) evaluate whether the changes are an improvement.

Keywords

Citation

Haskins, M. and Rotch, W. (2017), "Shun Electronics Company", Darden Business Publishing Cases. https://doi.org/10.1108/case.darden.2016.000279

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Publisher

:

University of Virginia Darden School Foundation

Copyright © 2004 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved.

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