Ann Arbor Railroad Company Abstract: The case uses a semi-fictional railroad company to introduce some of the most relevant topics in managerial accounting in a brief, yet effective, way. The first part delves into where costs come from and how they should be measured and allocated. The second part introduces the idea of using the cost data for decision-making purposes. Specifically, the case explores how to make a special-order decision and a price decision that include non-quantitative factors. The third part introduces the problems that organizations face in designing and using cost measurement systems. Overall, this case is a useful tool to learn how to map resources into services/products, how to build different cost configurations for different purposes, and how to link accounting measurements to the organizational structure. The intuitive setting of the case makes the learning experience pleasant and effective. Keywords: Cost Behavior, Cost Allocation, Decision Making, Control System.