Open the file Accounting Allocations xls on the book web site
Open the file Accounting Allocations.xls (on the book web site) to see a list of sample accounts that a firm has for their various plants. Your team has already gone through these accounts and has determined whether the costs are fixed or variable. What are the fixed and variable costs you should load into the model based on this analysis? Which plant has the highest overall fixed cost? Which plant has the lowest per-unit variable cost? How would you rank the competitiveness of these plants?
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