Problem: Cost Accounting Case Study
Review the attached IMA Educational Case Journal Case Study: Alternative Costing Methods: Precision Pain Shop's Dilemma by Eileen Peacock and Paul Juras.
1) If Mandy decided to pursue ABC without adequately investigating RCA, what specific points could Chad bring up about RCA?
2) Does Mandy have an obligation to share information with Chad to help determine the appropriate course of action for the company?
3) Based on the IMA Statement standards, does Chad have an obligation to teach the staff about RCA and benefits of RCA to the company?
4) How does the concept of sunk costs impact the credibility of information? Based on information provided by ABC, is there credible information upon which to make a decision? Should the firm continue to use the information provided ABC analysis after investing time and money in the RCA costing system?
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.