Subject category:
Finance, Accounting and Control
Originally published in:
2018
Length: 8 pages
Data source: Generalised experience
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Abstract
The case is set in the context of a mid-size partnership firm engaged in the business of screen and dye-sublimation printing. The case illustrates the problem faced by the founder partner and head operations for accepting or rejecting an order. A large customer has placed an order which is expected to consume significant capacity. However, the firm is already working near its capacity. In addition to that the order seems to be lower than the total cost. This case illustrates a typical problem faced by the managers in the short run. The case fits in the context of short-term decision making under Management Accounting course. The problem relates to special order situation below the total cost. The case has enough data for students to find an optimal solution and decide whether the order will make a loss as predicted and if it should be accepted.
About
Abstract
The case is set in the context of a mid-size partnership firm engaged in the business of screen and dye-sublimation printing. The case illustrates the problem faced by the founder partner and head operations for accepting or rejecting an order. A large customer has placed an order which is expected to consume significant capacity. However, the firm is already working near its capacity. In addition to that the order seems to be lower than the total cost. This case illustrates a typical problem faced by the managers in the short run. The case fits in the context of short-term decision making under Management Accounting course. The problem relates to special order situation below the total cost. The case has enough data for students to find an optimal solution and decide whether the order will make a loss as predicted and if it should be accepted.