Susan B. Hughes

PPC, Inc., an instructional case

Abstract PPC, Inc. can be used to discuss many management accounting concepts, including ABC, variable costing, the theory of constraints, cost allocation, and behavioral issues. The case is based on the operating results of an actual printing company that was evaluating its product costing system in an attempt to improve profitability. In addition to dealing with new competitive pricing pressures, bottlenecks in one department prevented the company from increasing its sales volume to the level necessary to cover recent additions in fixed costs. The case materials can be adapted to emphasize one concept or to discuss alternative techniques, and the case can be used in introductory through MBA managerial accounting classes.