Tasty Apple, an apple chip manufacturer, was established in 1974 by Katherine English. In 2004, Katherine English died, and her son, Mark, took...

Tasty Apple, an apple chip manufacturer, was established in 1974 by Katherine English. In 2004, Katherine English died, and her son, Mark, took control of the business. By 2009, the company was facing stiff competition from national snack-food companies. Mark was advised that the company’s plants needed to gain better control over production costs. To achieve this objective, he hired a consultant to install a standard costing system. To help the consultant in establishing the necessary standards, Mark sent her the following memo: