Gibson Insurance Company

Darden Business Publishing Cases

ISSN: 2474-7890

Publication date: 20 January 2017


This case provides students with an opportunity to practice a set of activity-based costing calculations. More importantly, it provides an instructor with the opportunity to challenge students to think about and to discuss the rationale used by the case protagonist to revise the means by which the company allocates corporate support costs to the product lines and to the business units. It is best used as an introduction to activity-based costing and/or the more general topic of cost allocations. As such, it is effective for undergraduate and graduate managerial accounting courses, as well as executive education financial management programs.



Haskins, M., Lilly, K. and Smith, L. (2017), "Gibson Insurance Company", Darden Business Publishing Cases, Vol. 1 No. 1.

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University of Virginia Darden School Foundation

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