Case Name :      Scarpe Italiane, S.p.A.

Authors :           David W. Young

Source :             The Crimson Group

Case ID :           TCG031

Discipline :        Accounting

Case Length :    03 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

This is a case on ABC but with a tricky differential cost decision of the keep/discontinue variety embedded in it. Students need to work with manufacturing overhead allocation, ABC, overhead variances, and variable costing. They also need to see the big picture, which includes a new product line that, while covering its manufacturing overhead, is contributing only about $5,000 to $58,000 of selling, general, and administrative costs.