Management Accounting Case Book: Cases from the IMA Educational Case Journal

Cover
Title Page
Copyright
Preface
Contents
I. Business Leadership and Ethics
Trust May Breed Trouble: Fraud Opportunities and Ethics at Saintly Church
Introduction
The Church
The People
General Financial Processes
The Circumstances
Case Questions
Endnotes
Diamond Foods, Inc.
Introduction
Overview
Diamond Foods: More than Nuts
The Accounting Schemes
Earnings Management Methods
The Auditors
Epilogue
General Questions:
Endnotes
Sunk Costs: What Costs Do You Sea?
Background
Introduction
The Turbulence
The Numbers
Linda’s Situation
Festival Cruise Lines Case Questions
Appendix A: IMA® Statement of Ethical Professional Practice
The A-12 Stealth Bomber: Escalating Commitment to a Failing Project
Introduction
Background
Requirements
Appendix A: IMA Statements on Ethics
Appendix B: Department of Defense’s Statement on Ethics
Endnotes
Jensen Pharma: A Governance Role Play
Introduction
Instructions To Students:
Roles for Each of the 14 Role-Players
II. Operations, Process Management, and Innovation
General Lab
Introduction
A Multidisciplinary Shareholding
A Relevant Industry With a High Level of competence
General Lab’s Strategy and Business Model
Expansion
Merger With Labco and Entry of 3I Capital
Current Situation
Issues for Discussion
Autoliv, Inc.: Using Lean Practices to Improve the A/P Reconciliation Process
Introduction to Autoliv and the Lean Culture
Introduction to Accounts Payable(AP) Reconciliation Process at Autoliv
Current State of the AP Reconciliation Process
Improvement Objective
Assignment
Appendix A
Endnotes
Sometimes Accountants Fail to Budget
Introduction
The Organization
Background
Required
Tri-Cities Community Bank: A Balanced Scorecard Case
Case A: BSC Development
Case B: Assessing Financial Improvement
Creating a Lean Enterprise: The Case of the Lebanon Gasket Company
Introduction
The Plant and its Products
The Lean Organization
Mass Versus Lean Production
The Finance Function
The Next Step
The Assignment
Supplemental Resources
III. Planning and Decision Making
Hula Island: Strategic Decisions Involving Costs and Benefits of Internet Advertising Programs
Introduction
Internet Advertising Campaigns
Internet Advertising Options
Suggested Discussion Questions
Endnotes
XYZ Company: An Integrated Capital Budgeting Instructional Case
The Company
The Proposed Investment: An Asset-Replacement Decision
Additional Assumptions Regarding the Capital Budgeting Decision
Base-Case Analysis: Keep or Replace the Existing Machine?
Dealing With Uncertainty: Sensitivity Analysis
Additional Tax Considerations
Strategic/Qualitative Considerations: Beyond the “Numbers”
Project Evaluation Summary
Case Requirements
Endnotes
The Glenridge Retail Development
Introduction
The Glenridge Coronet Store
The Sorenson’s Chain
Allied Foods and the Wholesale Customer
Binding the Wholesaler-Retailer Relationship
Alternative Store Formats and Cost Structure
Forecasting the Operations of the New Glenridge Site
The Glenridge Site Survey
Structuring an Agreement With the Prospective Buyer
Chambers Meets With the Analysts
Cat & Joe’s Pig Rig: Should We Stay or Should We Go?
Introduction
Cat and Joe
Food Trucks
The Business
The Bullarama Dilemma
Assignment
Endnotes
Over-land Trucking and Freight: Relevant Costs for Decision Making
Abstract
Introduction
Industry Terms
Industry Background and Cost Structure
Types of Business Arrangements With Drivers
Capacity Issues and Industry Practices
The Proposal and Related Issues
The Decision
Patterson Manufacturing
Introduction
Background
The Task
Pikesville Lightning: Evaluating Strategic Business Expansion Opportunities
Introduction
Background
The Pikesville Lightning
Expanding Profitability
A Vision for the Future
The Challenge
IV. Risk Management and Internal Controls
The Le-Nature’s Inc. Fraud: What Happened and Why?
Introduction
Strategic Financing
Suspicions And Resignations Spark Investigation
Fraud Allegations Resurface
Fraud on a Grand Scale
Judgment Day
Discussion Questions
Endnotes
West Coast Equestrian Association
Introduction
History
Services
Governance
Required
Out of Control: Lax Procedures at National Capital Trust?
Introduction
Background
Business Process
Client Enrollment
Administration Procedure
Transaction Controls
New Hire
Assignment
Real-Life Results
The Moulder Company: Alternative Strategies for Toxics Use Reduction
Introduction
Seating Division and Finishing Processes
Collecting the Cost Information
Pollution Prevention Options
Preparing the Feasibility Report
Concerns and Future Challenges
Suggested Discussion Questions
Reference List
Appendix A
Appendix B: Pollution Prevention Options
Endnotes
A Declaration of War: A Case of Competition in the Video Game Industry
Background of Video Game Entertainment
Acquiring Digital Creations and its Truewar Series
A Declaration of War
A VGE Executive Meeting
Risk in the Video Game Industry
Structure of the Video Game Industry
VGE’S Publishing Process
Video Game Cost Breakdown
Console Releases
Royalty Agreement Between VGE Anddigital Creations
Digital Creations’ Newest Project: Truewar III
A Growing Concern
Decisions About Digital Creations
Fact and Fiction
Case Requirements
Endnotes
SuperHeroes LLP: A Super Management Control Case
Introduction
Part 2: Application
V. Strategic Cost Management
The Gatekeepers: A Case on Allocations and Justifications
Introduction
Scenario 1—Student Reporting Issues: Group Point Allocations
Suggested Discussion Questions for Scenario 1
Scenario 2—Segment Reporting Issues: Strategic Cost Allocations
Suggested Discussion Questions for Scenario 2
Summary: Analysis of Reporting Environments
Suggested Discussion Questions
Endnotes
Product Costs: Application in an Insurance Company
Introduction
Company Overview
Life Insurance Terms, Products, and Processes
Current Costing System
Objectives of the Product Cost Allocations
Project Overview
Results of the First Test of Revised Process
Assignment
Phase II: Activity-Based Costing
Additional Reading
Dynamic Medical Solutions: Expanding the Application of Cost Management Principles to Channel and Customer Profitability Analysis
Company Introduction and Case Background
Regulatory Environment
DMS’s Dilemma
DMS’s Initial Concerns and Response
Selected Product Pricing Data
Business Observations
Case Questions
Endnotes
Product Costing at Fine Foods: Is it a Symptom or the Problem?
Introduction
Fine Foods, Inc.
Cost Allocation
Performance Evaluation in Fine Foods
Your Report
Part 4: Conclusion and Recommendations
TransGlobal Airlines
The Current Situation
The Challenge
The Assignment
Alternative Costing Methods: Precision Paint Shop’s Dilemma
Company Description
The Costing System
Planning For Capacity Use
Decision Point
Suggested Resources
Sidebar 1: PPS’s Production Process
The Paint Process
The Setup Process
Quality Assurance or Rework Process
Sidebar 2: Finessing
Sidebar 3: Basics of RCA
EULA