Lehigh Steel Case

Lehigh Steel Case

Akula Venugopal Sheela, Claeys Aurélien,

Krieckemans Wim, Schildermans Stijn, Stroeckx
Alexandra, Renard Kristof, Weyns Cedric
 Standard Costing
Condition Roller wire Chipper Round Machine
  round knife bar coil

Operating Profit $0,6 $0 $-0,25 $-0,26 $-0,15

0.8
0.6
0.4
0.2
0
-0.2
-0.4
Condition Roller wire Chipper Round bar Machine
round knife coil
2
 ABC Costing
Condition Roller wire Chipper Round Machine
  round knife bar coil
Contribution
Margin -$0.35 -$0.20 -$0.58 -$0.15 $0.03

$0.20
$0.00
-$0.20
-$0.40
-$0.60
-$0.80
Condition Roller wire Chipper Round bar Machine
round knife coil
3
 TOC Costing
Condition Roller wire Chipper Round Machine
  round knife bar coil
Throughput
Contribution $1,77 $0,77 $0,90 $0,72 $0,75

$2.00

$1.50

$1.00

$0.50

$0.00
Condition Roller wire Chipper Round bar Machine
round knife coil 4
 Conclusion
• In the standard costing system the condition
round is profitable. The other ones create a
loss.
• In the ABC costing system only the machine
coil is profitable.
• The TOC system shows us on which product
we should focus. This could improve the
profitability in the future.