Atlas Ice Cream Case: Capacity Issues, Just in Time, Profitability and Decision Making

Abstract

This case provides readers with some management accounting issues in a real life situation which were experienced by a small business in Australia. One of the main objectives of this case is to demonstrate how management accounting practices learn in text books could be used to tackle practical issues in real life events. Another objective of this case is to demonstrate that in real life any business could face with a group of different issues (not a single issue) at the same time which are linked together. For example as this case shows, one business may have capacity issue, just in time issue plus a number of other issues at the same time and how the business could deal with one issue could influence the way it should deal with other issue/s. So, providing a real example, this case demonstrates that in real life situation management accounting issues are not always isolated.

Keywords: capacity issues, just in time, profitability and decision making

JEL Classification: A20