ACC 561 Broadening Your Perspective

Acc 561

Broadening Your Perspective

Introduction

Ideal Manufacturing Company is located in Sycamore, Illinois and has a research and development department that for many years has been the only contributor to the company's new farm machinery products. This department only provides services to in-house manufacturing departments, and they all produce agriculture, farm and ranch related machine products. The company has never sold to the outside population but has been long approached by others to do so. Because the cost of running this department are getting so expensive the company is now contemplating selling to the outside to help cover some of the rising cost.

The Four Pools & Costs

The R & D activities fall into four pools of costs and those are:...