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Kanthal case study :

The case of the Swedish company kanthal shows how important an efficient account management system is for a small company which has many costumers and would loose profit and profitability if it didn’t apply such a system.
Kanthal had many costumers and used to apply the same basis for estimating the costs for all products and orders. Administrative, sales and marketing costs were treated as a fraction of product cost indifferently from the product type and the order.
It seems after analyzing the fraction of each of the costs in the total product cost that overhead is not negligible and that the company cannot afford going on using the same account management system without an important loss of profitability. Or, at least, that the company could be much more profitable if an activity based costing was applied to reestimate the cost per product and per order (and therefore per costumer) and review the prices depending on the the type and volume of each......

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Approximate Word Count: 387
Approximate Pages: 2 (250 words per double-spaced page)

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