Protect-a-Plate Venture

內容大綱
Based on a preliminary analysis, the inventor of a licence plate protector believes the product would be viable. He collects information on the investments and costs necessary for production, and develops a selling price. But has he correctly identified the fixed, variable and step costs in his analysis?
學習目標
This case was designed as the opening case in a general management program sequence. There are many virtues to the Protect-A-Plate case, but the extensive coverage that it permits is perhaps its most valuable feature. Within the space of a single introductory class of one to one and a half hours, it is not only possible to touch on a number of score carding or external reporting issues, but it is also possible to introduce the crucial concepts underlying problem-solving accounting. Those, of course, are the notions of contribution margin and cost-volume-profit analysis, which relies so heavily on the importance of the distinction in cost behavior between fixed and variable costs.
涵蓋主題
新增
新增