Performance Evaluation in a Traditional Cost System : A Case Study

This case provides an integrated discussion of several cost and management accounting topics in a realistic setting, including cost behavior, incremental decision making, performance evaluation, and output variances. The case is flexible so it can be used over one 75-minute class session cost or managerial accounting course or expanded to two class sessions for a more in-depth discussion with optional questions, as described in the teaching notes. For a first course in cost or management accounting, this case can be used as a capstone near the end of the term. In an advanced course in cost or management accounting, the case can be used early in the term to review these topics before moving on to more advanced topics