Publications
Publications
  • May 1987 (Revised November 1998)
  • Case
  • HBS Case Collection

John Deere Component Works (A)

By: Robert S. Kaplan
  • Format:Print
  • | Pages:19
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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.)

About The Author

Robert S. Kaplan

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