Description
| Summary: | In this case students are presented an opportunity to identify the various roles a costing system can play in supporting strategic management decisions. The setting is a privately held custom coater of automotive components to original equipment manufacturers (OEMs). Historically the company took just about all the work it was offered and management was using a form of standard costing to evaluate product profitability. Demand was increasing but along with the increase in volume came a decrease in profits and management could not understand why. There had been a recent switch to an ABC system to better understand the costs associated with painting the various products, but now management is unsure if this system is providing the information they need for effective decision making. Throughput costing based on Theory of Constraints (TOC) and Resource Consumption Accounting (RCA) have now been offered as alternatives for supporting strategic decision making and the students are asked to help management make a decision about their costing system.
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| Item Description: | Originally Published InPeacock, E., & Juras, P. (2010). Alternative costing methods: Precision Paint Shop’s dilemma. IMA Education Case Journal, 3(3), Article 3. |
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| Physical Description: | 1 online resource : illustrations. |
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| Bibliography: | Includes bibliographical references and index. |
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| ISBN: | 9781526427939 (ebook) : |
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