=+2-28 K Cost drivers and value chain OBJECTIVES 3, 8 Beyond Mobile Phones (BMP) is developing a

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=+2-28 K Cost drivers and value chain OBJECTIVES 3, 8 Beyond Mobile Phones (BMP) is developing a new touch screen smartphone to compete in the mobile phone industry. The phones will be sold at wholesale prices to phone companies, which will in turn sell them in retail stores to the final customer. BMP has undertaken the following activities in its value chain to bring its product to market. Identify the customer need. (What do smartphone users want?)

Perform market research on competing brands Design a prototype of the BMP smartphone Market the new design to mobile phone companies Manufacture the BMP smartphone Process orders from mobile phone companies Chapter 2: An introduction to costs terms and inventory costing 67 M02_HORN3377_02_LT_C02.indd 67 2/09/13 3:17 PM Package the BMP smartphones Deliver the BMP smartphones to the mobile phone companies Provide online assistance to mobile phone users for use of the BMP smartphone Make design changes to the smartphone based on customer feedback During the process of product development, production, marketing, distribution and customer service, BMP has kept track of the following cost drivers:

Number of smartphones shipped by BMP Number of design changes

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Cost Accounting A Managerial Emphasis

ISBN: 9781442563377

2nd Edition

Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan

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