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Transcript of Huron Automotive
Who is Sandy Bond?
Three concerns of HA
Small supplier of selected vehicle parts
HA competes with larger suppliers in industry
ACCT 5213, Gaharan, Case 18-1
Divisions of the CFI Department
Custom work will go through
all of the other four divisions,
similar to the standard parts.
Bond's 1st Proposed Method
HA is having problems with the way they cost their jobs
Department heads oppose new methods
Costs can be traced and allocated accurately with new method
HA should use one of the variants of new costing and increase the price of products
Profit Margin is too small to make any meaningful impact on company operations.
Preps parts for further machining
Performs all machining processes on standard parts.
Assembles and tests all products, standard and custom.