Alumina plc: A case study of the post-audit of capital investment expenditure
Document Type
Journal Article
Publisher
Routledge
Faculty
Faculty of Business and Law
School
School of Accounting, Finance and Economics
RAS ID
4085
Abstract
The case examines investment expenditures made by a major Australian manufacturer involved in the mining of bauxite ore and its refinement into alumina. The expenditures, around which the case revolves, are intended to increase the efficiency of operations of one West Australian refinery, consistent with corporate goals of cost reduction and profit improvement. The investment evaluation processes then in place at Alumina plc permitted the joint evaluation of multiple projects, even where the relationship between the projects might be tenuous. The case details one such multi-project investment and facilitates an evaluation of the components in a way that suggests that the appraisal process might be flawed, or at least sub-optimal.
DOI
10.1080/06939280600579487
Comments
Smith, M. (2006). Alumina plc: A case study of the post-audit of capital investment expenditure. Accounting Education: An International Journal, 15(2), 217-225. Available here