Case:What Cost System Might Jiffy Lube Use?
Frequently, when we think of service companies, we think of specific,
non-routine tasks, such as rebuilding an automobile engine,
consulting services on a business acquisition, or working on a major lawsuit.
However, many service companies specialize in performing repetitive,
routine aspects of a particular business. For example, auto-care vendors such
as Jiffy Lube focus on the routine aspects of car care. H&R Block focuses on
the routine aspects of basic tax practice, and many large law firms focus on
routine legal services, such as uncomplicated divorces.
Required: What criteria should be considered when selecting a cost accounting
system for Jiffy Lube?
Note: 1. This case is due the next class meeting (Oct. 5, 2009)
2. Please limit your answer to one page
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