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ARCP 2

In this multimedia case, Bruce Wood of ARCP wrestles with an intriguing challenge. His company was able to secure an asphalt supplier for one hundred and ninety seven dollars and fifty cents a ton, which is below a previously calculated transfer price. This meant that it was no longer cheaper to buy asphalt internally as it could be bought for less elsewhere. The case deals with the implications of this finding.

Interviewee

Bruce Wood

Company

Industry

Business Activity

ARCP 

Road Construction

Construction

Headquarters

Halifax, Canada

Size

Medium

Employees

25 to 500

Greater than $25 million

Yearly Revenue

Private Company

Type of Entity

Subject

Accounting

Level of Difficulty

Medium

Enhance cost accounting knowledge

Teaching Objectives

Keywords

Accounting

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