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Forrest Hill

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INSTRUCTIONS
Forest Hill Paper Company

Assigned: Wednesday, February 20, 2013
Due: Dr. O’Connor/Writing Lab by Friday, March 8

The Forest Hill Paper case represents an exercise in activity based costing to help you understand in greater depth how activity based costing is performed within organizations. The case suggests that developing the product cost is not the end point for the accountant – the proper evaluation and analysis of the “calculated” information is integral in making recommendations contributing to organization success.

Assume that your group is a consulting group that has been hired by Forest Hill’s management team. Your group has listened to the discussions contained in the case and obtained the information contained in the exhibits. Your recommendations should be contained in a business memorandum addressed to Forest Hill’s management team. The memo should be no longer than three single spaced typed pages, excluding any relevant exhibits you may have prepared and referenced in the text of your memo. The exhibits may be attached at the end of your memo. The memo should, at a minimum, respond to the questions contained at the end of the case.

This assignment will be graded in part on the “correctness” of the calculations and quantitative analysis. However, “getting the numbers right” is only the first step. A significant portion of the points will be earned by the appropriateness of your recommendations, your ability to identify the most significant issues in the case, the quality and clarity of the arguments you make supporting your analysis and conclusions, and the professional appearance of your document. A copy of the evaluation form that will be used in assessing your work is available in the Writing Lab, and you are encouraged to consider the elements of this evaluation form as you prepare your memo.

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