Abstract
CWWC is a world leader in the production of cement. Because cement production is energy intensive and raises health and sustainability issues, CWWC has increased the use of alternative fuels (e.g., waste) to heat the kilns in place of more traditional fuels (e.g., fuel oil, coal). So far, waste-related activities were integrated in CWWC's cement factories. However, CWWC now considers creating a separate business unit dedicated to waste transformation into usable fuels. The objectives of the case is to have students understand and discuss the challenges of creating interdependent profit centres, implying the implementation of transfer prices. The discussion can remain at a general level or be based on detailed calculations of transfer prices.