Publications
Publications
- May 1987 (Revised November 1998)
- HBS Case Collection
John Deere Component Works (A)
By: Robert S. Kaplan
Abstract
The division has recognized the inadequacies of its existing, traditional cost system for estimating product costs. Describes the innovative activity-based system that was developed to more accurately trace overhead costs to individual products. Provides students with the opportunity to critique a standard cost system and to assess the characteristics of the proposed system that traces costs to production activities.
Keywords
Activity Based Costing and Management; Cost Accounting; Cost Management; Cost vs Benefits; Production; Budgets and Budgeting; Innovation and Invention; Innovation and Management; Consumer Products Industry
Citation
Kaplan, Robert S. "John Deere Component Works (A)." Harvard Business School Case 187-107, May 1987. (Revised November 1998.)