The Sea is Getting Rough: Analysis of Incremental Costs during the Pandemic

Abstract

This teaching case aims to understand how incremental cost analysis can be applied in decision-making The case portrays a fishing company in the segment that suffered a disruption in demand from the international market as a result of the COVID-19 pandemic Its managers, who already acted to mitigate previous financial problems, now need to decide how to dispose of fish production during the pandemic The case encourages the development of analytical competence on the impact of a rupture in demand, the identification of relevant costs for decision-making from an income statement, and managerial decision-making based on incremental cost analyzes This case, based on interviews and estimated accounting data, was designed for undergraduate and graduate courses focused on costs in the areas of Business and Accounting (English) [ABSTRACT FROM AUTHOR] Este caso de ensino tem o objetivo de discutir como as analises incrementais de custos podem ser utilizadas como subsidio para a tomada de decisao O caso retrata uma empresa pesqueira que sofreu uma ruptura na demanda do mercado internacional em decorrencia da pandemia da COVID-19 Os gestores, que ja agiam para mitigar problemas financeiros anteriores, agora precisavam decidir como escoar a producao de peixes em um cenario de pandemia A partir desse contexto, o caso incentiva o desenvolvimento da competencia analitica dos(as) estudantes ao estimula-los(as) a refletir sobre o impacto de uma ruptura na demanda, a identificacao de custos relevantes para a tomada de decisao a partir de uma demonstracao de resultado simplificada e a tomada de decisao gerencial baseada em analises incrementais de custos Este caso, baseado em entrevistas e dados contabeis aproximados, foi projetado para as disciplinas que envolvam custos em cursos de graduacao e pos-graduacao (lato sensu e stricto sensu) nas areas de Administracao e Ciencias Contabeis (Portuguese) [ABSTRACT FROM AUTHOR] Copyright of RAC - Revista de Administracao Contemporânea is the property of Associacao Nacional de Pos-Graduacao e Pesquisa em Administracao (ANPAD) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder s express written permission However, users may print, download, or email articles for individual use This abstract may be abridged No warranty is given about the accuracy of the copy Users should refer to the original published version of the material for the full abstract (Copyright applies to all Abstracts )