Costing Allocation and Different Implications in a Small Clothing Manufacturing Company – A Case Study

This case study provides a thorough training and/or examination of students’ basic costing skills linked to pricing and touching some behavioural aspects of management accounting as well. The case study is divided into three specific areas and concerns of the organization enabling both interrelations between the three subsections but also isolation in the use of the subsections. The subsections provide each their theme to the case. The case study is, thus, applicable both as an exam and as a case study for class exercises. It provides quite specific elements of cost allocation and allows for further reflection of the various areas of a small international organization’s coordination and management challenges. The issues are aimed at management accounting students but may be beneficial for all types of business students. The case study enables students to demonstrate their comprehensive costing skills and understanding within an international business. Likewise, used as class exercises, it will prepare students for an exam situation and should enhance an understanding of costing behaviour