An Instructional Case: Cost Concepts and Managerial Analysis

ABSTRACT: This case is designed to help you develop a working understanding of fundamental cost concepts (cost behavior, cost traceability, cost flexibility, and unit costs) and the proper use of cost data for managerial analysis purposes. The case narrative describes a business scenario and a problematic managerial analysis based on certain cost data. The case requirements ask you to apply basic cost concepts to analyze the cost data, evaluate the use of cost data in the analysis described in the case narrative, and then effectively communicate the results of your analysis and evaluation in the form of a professional written memo.