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Focuses on a relevant cost decision. Which costs are relevant for the decision? How should they be taken into account?

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Industrial Grinders have inventory on hand valued at $93,000, made up of special steel worth $26,400 and manufactured steel rings valued at $66,600. Steel rings have a normal life of about two-months. Industrial Grinders is a well-established company and has been around nearly 70 years.

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Because Industrial Grinders is able to employ labor at 70% and reduce labor cost, a higher profit on the recent manufactured steel rings can occur. This saving will allow IG to offer a flexible discount on the steel sale price if they need.

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Industrial Grinders N.V. Case Analysis Problem Statement Industrial Grinders N.V. (IG) has a large quantity of steel rings on hand and the substantial inventory of special steel for their manufacture with a total book value of the inventories exceeding $93,000.

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Industrial Grinders' Case Study Name Instructor Task Date Introduction Industrial Grinders (I.G) is an industry dealing with the production of steel rings currently used in certain machines.

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