Monica Arroyo-Brockmann
Affiliation not specified
Susan B. Hughes
Butler University
Abstract: This case was initially written as an assignment for the MBA capstone course at a midwest university. The case is relevant for undergraduate advanced management accounting courses and MBA management accounting and management control courses. The integrative nature of the case promotes class discussions about the role and impact of measurement systems on many aspects of organization performance.
This case was selected for further development as a teaching case because of its applicability to todays manufacturing environment. Outsourcing production has become a frequent occurrence, but not all companies achieve positive results from their outsourcing decisions. This case focuses on one hypothetical companys experience with outsourcing a product that is held to high quality standards. During the classroom testing of the case, students reported that the case represented a very typical situation arising from continued focus on outsourcing and cost reduction. I would rate the learning value as excellent.
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