LIST OF CASES

Chapter 1
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 facing.

Chapter 2
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 overhead allocation.

Chapter 3
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.

Chapter 4
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.

Chapter 5
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.

Chapter 6
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.
6-4: QuantumTM
This case shows how ABC affects product costs and considers the use of ABC information in decision making.

Chapter 7
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.

Chapter 8
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.

Chapter 9
9-1: Ethics Case: JUNIPER PACKAGING SOLUTIONS, INC.
A plant manager is considering a plan to circumvent a freeze on capital expenditures.
9-2: SERGO GAMES
A game company is considering outsourcing manufacturing of CDs.

Chapter 10
10-1: Ethics Case: COLUMBUS PARK—WASTE TEATEMENT FACILITY
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.

Chapter 11
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.

Chapter 12
12-1: MAYFIELD SOFTWARE, PACKAGED SOFTAWARE DIVISION
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 using EVA.
12-3: WinTechMotors
Owners of a sports and luxury auto dealership are faced with negative EVA and must cut their investment in inventory.

Chapter 13
13-1: JORDAN-WILLIAMS, INCORPORATED
A publisher of college textbooks is evaluating the finanical condition of a potential business partner.