VROMAN TIRE COMPANY
Keywords:
Cost allocation, ABC, activity-based costing, product costingAbstract
Vroman Tire Company (VTC) recently automated its plant in Memphis, Tennessee, producing over 400 different tires in various sizes. Before automation, the company used a simple plantwide rate to allocate conversion costs to its products, while material costs were assigned directly to tires.
We provide two separate data sets. The first data set (Table 1) provides the information needed to answer Alfred Olson's concerns within the case. The second data set (Table 2) will help students address parts 2 and 3. Part 2 and 3 come with their own brief case along with a set of questions to be discussed.
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
