Alpha Metals Lötsysteme GMBH

Published 15 Dec 1997
Reference 4728
Industry Mining & Metals
Region Europe
Summary

This case is ideal as an introduction to relevant costs and product costing. The case describes the issues a manager of a German plant producing solder faces in deciding whether to scrap or reuse returned packaging which contains toxic waste or change the packaging.

Teaching objectives

This case is perfect for introducing the concept of relevant costs, and the mechanics of allocating overhead costs on the basis of direct labor. In executive courses, it can be distributed after a short introduction. In MBA or undergraduate courses, it should be used after a discussion of the nature of costs and volume profit analysis.

Keywords
  • RD0398
  • LABOUR
  • ETHICS
  • EUROPE
  • Relevant Costing
  • Environmental Accounting
  • Eco Efficiency
  • Management Accounting
  • Product Costing