| Summary: | 碩士 === 國立清華大學 === 工業工程與工程管理學系 === 92 === Small-and-medium-sized enterprises in Taiwan are lacking funds, personnel and appropriate management resources. To deal with global and local challenges, many companies have few choices for change. Because of this, all they can do is to upgrade their products by creating new models, new functions, new materials, etc…. this added value is the most common way to face those challenges.
However, do those companies increase their prices and profits through upgrading their products? Or are there any other costs that have to be paid to reach this goal of upgrading? And how can they be sure that there will be higher profits? So, can upgrading products raise prices? Does higher unit priced products mean higher added value and higher profit products? Or are these just all myths?
The topic of this thesis is focused on the shoe industry. Based on an ABC viewpoint, we analyzed the production cost structure of this case study company. Our aim was to clear the myth of “Higher prices, Higher profits”. We wanted to analyze the effect different parameters have on the cost structure and in the relationship between cost structure and strategy, in order to have an improved traditional cost system that is suitable for small-and-medium-sized enterprises including those in the shoe industry. This cost structure would then clearly indicate the obvious costs and also any influence that hidden costs have on the dominant strategy.
The major finding of this study are summarized as follows:
1.In the traditional cost system, product costs have a distorted situation.
2.Higher unit prices do not necessarily translate into higher profit products.
3.The parameters that affect the cost structure are related to the final output quantity.
4.Different life cycle products are in different cost structures.
5.Decision-making must consider production capacity in addition to the cost structure.
6.Decision-making must take into consideration the hidden cost elements.
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