Sack It & Pack It, Inc.: 12 Combinations of GAAP and How They Differ

Darden Business Publishing Cases

ISSN: 2474-7890

Publication date: 20 January 2017

Abstract

This short but provocative case is a useful vehicle for differentiating the financial statement effects of just a few of the accounting method choices available under U.S. generally accepted accounting principles (GAAP). Designed for MBA students, the case presumes a basic understanding of the inventory cost flow methods of LIFO, FIFO, weighted average, and specific identification. Similarly, students must also have a working knowledge of the basic depreciation calculations for straight line, double-declining balance, and units-of-production. A young entrepreneur undertakes a simple modeling task to explore the differential effects of four different inventory methods in combination with three different depreciation methods. Will there be much difference across the options? He is intrigued by the fact that he has some choices of accounting methods available to him as he gets ready to prepare a set of financial statements for his first year of operation.

Keywords

Citation

Haskins, M. (2017), "Sack It & Pack It, Inc.: 12 Combinations of GAAP and How They Differ", Darden Business Publishing Cases. https://doi.org/10.1108/case.darden.2016.000270

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Publisher

:

University of Virginia Darden School Foundation

Copyright © 2009 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved.

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