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The evaluation of hidden profits and losses can be ascertained 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 costs as fixed while treating some administrative costs as period expensies. With 80% of sales being attributed to our in-stock product line, the current costing system makes sense intuitively. However, our invoiced sales have increased and our current system indicates growth in profit, our return on capital is stagnant and our employees have decreased. Certainly, our costing system is not accounting for our true......

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Approximate Word Count: 585
Approximate Pages: 3 (250 words per double-spaced page)

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