Case Study-Pronto Plactics

Introduction Pronto Plastics Ltd is a low cost produce of plastic moulded kitchenware. The company has two product lines which is the Pronto plates and cups and the Glamour containers and bowls. Pronto Plastic's corporate strategy is that they are serving in a kitchenware plastic product market and their competitive strategy is that they are expanding their business line with a more sophisticated and complex product. These strategies are to out-beat their competitors and try …

…The product cost generated by the ABC is more accurate than the conventional costing system but the product cost should be viewed with caution. Managers should be careful with product cost that contains allocation of facility level costs. (Brewer, Garrison, Noreen, 2002) Reference 1.<Tab/>Brewer, Garrison, Noreen, "Introduction to Managerial Accounting", 2002, McGraw Hill, Irwin, 2nd Edition. 2.<Tab/>Cost Analysis for Marketing and Business Management M course guide book.