Case | HBS Case Collection | April 1998 (Revised September 1998)

Classic Pen Company, The: Developing an ABC Model

by Robert S. Kaplan


Classic Pen has diversified from its core blue and black pen business by introducing new specialized colors. But costs have risen and margins on blue and black pens are decreasing. The controller turns to activity-based costing (ABC) for an explanation.

Keywords: Activity Based Costing and Management; Manufacturing Industry;


Kaplan, Robert S. "Classic Pen Company, The: Developing an ABC Model." Harvard Business School Case 198-117, April 1998. (Revised September 1998.)