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 4 pages in length and its case teaching package is 6 pages.

Abstract

This case is set in 1980 in a waste paper converting plant in New York City in a company whose business is tied closely to environmental recycling trends. The subject is product costing and cost control.

This is an excellent short case to cover basic concepts in cost analysis for cost control and managerial decisions. The case always works well in class, perhaps because the unusual industry context is intriguing to students who enjoy thinking about business issues in strange settings. Also, the topics covered have high common sense appeal. If students have not thought much about these issues before, this case is seen as very relevant new stuff. If they have studied these issues before, the case is seen as solid review in a "fun" business setting.

Linkages to Textbooks or Journal Articles/Fit Within a Course

I use this case in the second-year SCM course. It constitutes review of basic cost control issues and cost-based decision information. It also provides a good framework, using question 4, to consider SCM issues in a particular "fact situation":

• Value chain issues—Make vs. Buy
• Key success factors/competitive advantage/core competencies vis-à-vis competing with bulk scrap paper dealers.
• Strategic supply chain management.

The case could also be used in a required managerial accounting course by emphasizing questions 1, 2, 3, and 5 (which is given in the case teaching package).

Study Questions

1. Are unit costs per bale rising or falling between 1979 and 1980? Support your answer with the relevant cost calculations.
2. What inferences do you draw regarding the cost control issue which is of concern to the president? How well were costs controlled in 1980?
3. What recommendations would you make regarding the Summary Cost Reports for the collection and baling depots?
4. What other advice do you have for the president?

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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