VMD Medical Imaging Center

VMD Medical Imaging Center addresses a number of issues related to the role of costing systems in organizations and the challenges impacting their design and maintenance as the organization grows and develops over time. This teaching note begins by offering detailed suggestions for effective class discussions centered on the main issue addressed by the case (i.e. the need to revisit the costing system in light of a change in the demand mix for the services offered by the organization). In the second part of the teaching note, the authors provide suggestions for several additional avenues along which instructors can develop further discussion about the integration points between costing systems and other important activities, such as strategy definition and execution, transfer pricing, and cross-functional coordination.