TRIM Inc. / Audrey Taylor.

Format:

Book

Author/Creator:

Taylor, Audrey, 1947- author.

Series:

SAGE Knowledge. Cases.

SAGE Knowledge. Cases

Language:

English

Subjects (All):

Direct costing.

New products.

Physical Description:

1 online resource : illustrations.

Place of Publication:

London : Institute of Management Accountants, 2008.

System Details:

text file

Summary:

A fictional example demonstrates the danger of using fully allocated costs, even ABC, to determine the profitability of a newly proposed product line. Using marginal costing improves the solution but does not fully consider the option of increasing capacity. In order to determine whether capacity should be increased additional analysis must be done that focuses on the best way to use constraints and simultaneously balance demand against risk. The main focus of the case is the behavior of step-fixed costs. Capacity usually must be purchased in lumps that are rarely divisible. Students seldom have the opportunity in cases to deal with step-fixed costs and changing capacity. This case allows them to do both.

Notes:

Originally published in Taylor, A. (2008). TRIM Inc. IMA Education Case Journal, 1(1), Article 3.

No ILL or scholarly sharing allowed.

Description based on XML content.

ISBN:

9781526428660

OCLC:

1023549788

Access Restriction:

Restricted for use by site license.