Case | HBS Case Collection | 1998 (Revised from original 1998 version)

Insteel Wire Products: ABM at Andrews

by V.G. Narayanan and Ratna G. Sarkar

Abstract

Insteel implements an activity-based costing (ABC) system in 1996. It finds pallet nails to be its most profitable product and decides to expand the number of cells making pallet nails from two to four. A repeat of the ABC study in 1997 shows pallet nails have become the least profitable product.

Keywords: History; Resource Allocation; Activity Based Costing and Management; Budgets and Budgeting; Demand and Consumers; Cost Accounting; Expansion; Profit; Product Launch; Product Marketing; Growth and Development; Steel Industry;

Citation:

Narayanan, V.G., and Ratna G. Sarkar. "Insteel Wire Products: ABM at Andrews." Harvard Business School Case 198-087, September 1998. (Revised from original February 1998 version.)