1-1: THE CASE OF LOCAL 635
A union is disputing cost of meal charges to hotel employees.
1-2: HERBERT PLUMBING PRODUCTS
A senior manager wants to know a product's cost. But the "cost"
information needed depends on the decision the senior manager is
2-1: Ethics Case: BRIXTON SURGICAL DEVICES
To meet an aggressive earnings target, two senior executives are
planning to increase production to "bury" fixed overhead
costs in inventory.
2-2: CLK MARKETING REEARCH
A Marketing research firm is considering various costs when bidding
on a job.
2-3: DYNAMIC HYDRAULIC SYSTEMS
A Manufacturing firm is surprised that it is winning orders for
complex products while the company is not price competitive on simple
jobs that require less skilled (and lower paid) workers.
2-4: DUPAGE POWDER COATING
A Company's product costs are being distorted by its approach to
3-1: TECH-TONIC SPORTS DRINK
A Producer of a sports drink is considering alternative treatments
for the cost of lost units.
3-2: JENSEN PVC, INC.
A Company is considering lowering prices to increase sales and reduce
unit costs by making better use of excess capacity.
4-1: Ethics Case: WENDELL ROBERTS CONSULTING
A consultant's assumptions are biasing the calculation of damages
related to a law suit.
4-2: ROTHMUELLER MUSEUM
A curator at a museum is trying to estimate the financial impact
of a planned exhibit.
4-3: MAYFIELD SOFTWARE, CUSTOMER TRAINING
The customer training facility of a software company is showing
a loss. The manager needs to determine the number of classes that
must be offered to break even.
4-4: KROG METALFAB, INC.
A company is estimating lost profit, related to fire damage so it
can submit an insurance claim.
4-5: SEATTLE ESPRESSO, INC.
A company is considering the financial impact of a plan to attract
customers who are put off by service delays.
5-1: MicroImage Technology, INC.
A start up company has a negative gross margin and it appears that
"the more it sells, the more it loses." Use of variable
costing reveals that this is not the case.
5-2: RainRuler Stains
A variable costing income statement is used to show the financial
impact of sales related to a new customer category.
6-1: JANSEN ENGINEERING
An engineering company is concerned that cost allocations are discouraging
workers from using a computer that has excess capacity.
6-2: EASTSIDE MEDICAL TESTING
This case presents a service company example of ABC.
6-3: WILTON INTERNATIONAL
A company is evaluating the effects of alternative allocations of
costs related to an internally provided consulting service.
This case shows how ABC affects product costs and considers the
use of ABC information in decision making.
7-1: PRIMUS CONSULTING GROUP
A consulting firm is considering a client offer of a fee that is
less than standard rates.
7-2: MAYFIELD SOFTWARE, VAM
A Vendor Account Manager is preparing an analysis to convince a
supplier to lower its price.
7-3: FIVE STAR TOOL
A tool manufacturer is faced with a production constraint, and needs
to consider the financial impact of a plan to deal with the situation.
8-1: PRESTON CONCRETE
The company is considering moving away from its cost-plus pricing
approach when an increase in interest rates reduces housing starts
and the demand for concrete.
8-2: EASTERN UNIVERSITY PHARMACY
A university hospital pharmacy is considering the profit implications
of alternative approaches to encouraging prescription renewals from
"out of area" patients.
9-1: Ethics Case: JUNIPER PACKAGING SOLUTIONS,
A plant manager is considering a plan to circumvent a freeze on
9-2: SERGO GAMES
A game company is considering outsourcing manufacturing of CDs.
10-1: Ethics Case: COLUMBUS PARKWASTE
The manager of a waste treatment facility is planning to pad costs
in her budget because the city controller is likely to cut whatever
budget is submitted.
10-2: ABRUZZI OLIVE OIL COMPANY
A small producer of olive oil is preparing production budgets to
consider the impact of various sales levels. (Note that this case
is best "solved" using a spreadsheet.)
10-3: TEXAS STYLE, INC.
A small manufacturer of western clothes is considering budgetary
participation and use of non-financial measures in budgets.
11-1: BRANDON AMPLIFICATION
Work in process inventory is building up at Brandon Amplification
even though the company has a JIT system.
11-2: CHANPION INDUSTRIES
A purchasing manager is considering a material that has a price
higher than standard, but also a number of desirable properties.
12-1: MAYFIELD SOFTWARE, PACKAGED SOFTAWARE
The division of a company is asked to develop a balanced scorecard.
12-2: SUPER CLUB STORES
A company that operates membership warehouse stores is evaluated
Owners of a sports and luxury auto dealership are faced with negative
EVA and must cut their investment in inventory.
13-1: JORDAN-WILLIAMS, INCORPORATED
A publisher of college textbooks is evaluating the finanical condition
of a potential business partner.