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1. Major Issues and General Scenario

General Scenario:
Kanthal is a successful and profitable company that is a worldwide market leader in many of the products that it produces. Nevertheless, its new president feels that the company needs a new strategy that will provide it with a way to further increase profits but without increasing costs.

The new president believes that the key to the new strategy is to be able to understand the true nature (i.e. costs) of customers and orders. He feels that if the company is able to tie costs o customers in an accurate manner, it will enable the company to better focus on higher profitability.

Major Issues:
Understand the cost structure of the company.
Allocate costs on a per customer and per order basis.
Implement a new cost system that will support the new cost allocation methodology.
Improve decision making on customers and sales orders based on the information provided by the new system.



2. Case Questions......

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Approximate Word Count: 827
Approximate Pages: 4 (250 words per double-spaced page)

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