Prendergarth Shipping Co

Andrew M. McCosh and Michael J. Earl
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Andrew M. McCosh: Manchester Business School
Michael J. Earl: Oxford Centre for Management Studies

A chapter in Accounting Control and Financial Strategy, 1979, pp 85-88 from Palgrave Macmillan

Abstract: Abstract This is a marvellous case to use as a grand finale on relevant costs. In the past it was used as a two-day case, with the complexity of the problem causing students not to get very far in their first evening of preparation. The questions on the attached assignment sheet, developed by Professor Charles J. Christenson, suggest to the student how the problem must be looked at in small pieces, and then the pieces put together. These questions make the case teachable in only one day. However, I recommend calling on a strong student to answer questions 1–4 to help ensure getting through the discussion in 80 minutes. Similarly, experience has shown that tolerance of lengthy discussions on relatively minor points (e.g. will the Warrior make 69 round trips in East Africa, or a smaller number? Will the large vessels indeed save 72 miles steaming distance?) will preclude getting to the more interesting issues of the case.

Keywords: Large Vessel; Total Contribution; Round Trip; Shadow Price; Relevant Cost (search for similar items in EconPapers)
Date: 1979
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-04018-6_15

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DOI: 10.1007/978-1-349-04018-6_15

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