Case Teaching Package
A case teaching package is available for this case. It includes strategies for case presentation, key concepts, solutions to the assignment questions in the case, and suggestions for the most effective ways to work this case into your course.

Length
This case is 10 pages in length and its case teaching package is 8 pages.

Abstract

The topic for this case is Activity Based Costing and Activity Based Management. The setting is a company which sells inventory management services as an add-on to the business forms business. The company's strategy is simple-differentiate a "commodity" product-business forms-with value-added services-forms inventory management.

The case provides practice in ABC calculations (in a non-manufacturing setting) as well as practice in transitioning from ABC to ABM, and in transitioning further from ABM to an SCM perspective on the business and the business problem.

Linkages to Textbooks or Journal Articles/Fit Within a Course

I use this case to introduce ABC in the required managerial accounting course at Tuck. The ABC part of the case is fairly easy for students, so it constitutes good reinforcement of the basic calculational approach summarized in Exhibit A of the case.

Study Questions

1. Using the information in the text and in Exhibit 3 of the case, calculate the "ABC" based services costs for the TFC business.
2. Using your new costing system, calculate distribution services costs for "Customer A" and "Customer B".
3. What inference do you draw about the profitability of these two customers?
4. Should TFC implement the SBP pricing system?
5. What managerial advice do you have for Allied about the Total Forms Control (TFC) business?

The downloadable file for this case is in Microsoft® Word 7.0 for Windows®.

If you do not have Microsoft Word, you can download the free Microsoft® Word Viewer 97 right here:   For Windows 3.x   For Windows 95

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