Case
PAKISTAN RAILWAYS WORKSHOPS
INDUSTRY :-
AREA :ACCOUNTING & CONTROL
ORGANIZATION :-
LENGTH :0
LUMS No :01-514-2015-1
PUBLICATION YEAR : 2015
ABSTRACT:
The case describes a situation where a team of consultants have to finalise their recommendations about an appropriate costing system for the Workshops Division of the Pakistan Railways (PR). At the same time, they have to recommend whether or not the Steel Shop of the PR should sell certain products at prevalent market prices. The recommendations are important as they can have a bearing on the profitability of the Workshops Division, which is linked with the sustainability of the PR. The setting of the case brings into the limelight the problems that managers of state enterprises face while making managerial decisions. The case also illuminates consultant-client relationship dynamics and its implications for the advice that comes from the consultant. The case is a useful pedagogical resource for generating discussions on understanding product costs, the design of cost accounting system, and the costing of products for different purposes, e.g. pricing, relevant costs, and decision making. 28 September 2015