Publications
Publications
  • March 1989 (Revised March 1999)
  • Case
  • HBS Case Collection

Metabo GmbH & Co. KG

By: Robert S. Kaplan
  • Format:Print
  • | Pages:14
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Abstract

A privately owned German power tool company was dissatisfied with its existing cost system. The system could not produce timely accurate reports on cost center operations, and newly purchased automated machines were attracting large overhead costs. A new, highly automated system was designed and installed that used 600 cost centers and an appropriate activity base chosen for each center. The case shows the design of a highly accurate cost control system with flexible budgets used in both support and production cost centers.

Keywords

Activity Based Costing and Management; Cost; Budgets and Budgeting; Capital Budgeting; Cost Management; Reports; Private Ownership; Business or Company Management; Consumer Products Industry; Germany

Citation

Kaplan, Robert S. "Metabo GmbH & Co. KG." Harvard Business School Case 189-146, March 1989. (Revised March 1999.)

About The Author

Robert S. Kaplan

Accounting and Management
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