Option #2: Ace Fertilizer Company: Ethical Cost Allocations and Price Determination

July 3, 2023July 3, 2023 Discipline: Accounting

SEE ATTACHMENT FOR TEMPLATE FOR PAPER

Read the case:

Kreuze, J. (2009, September). Ace fertilizer company: Ethical cost allocations and price determination.  IMA Educational Case Journal, 2(3), ART. 3.

(SEE ATTACHED CASE)

Case Requirements:

Prepare a paper (memo) and address the following questions:

  • Did Abby compute the cost of the Breeland Ltd. special order correctly before the weekend get-together? If not, how was her cost estimate and/or price determination flawed?
  • Whose assessment of the costing of this special order do you believe is correct—George Smilee’s or Abby Conroy’s? That is, should George’s conversations with Josh impact Abby’s cost estimate of the Breeland Ltd. special order? Explain your answer.

Assignment Paper Requirements:

  • Write a paper (memo) of a minimum of 3 double-spaced pages, not counting the title and reference pages, which you must include separately.
  • Copy and paste each one of the questions into your paper in bold type to ensure you have answered each of the assignment requirements.

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