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1 – 10 of 960Mark E. Haskins and William Rotch
The Shun Electronics KL Radio division wants to expand its three departmental cost centers to eight, each with its own overhead cost allocation rate. As a result, it appears that…
Abstract
The Shun Electronics KL Radio division wants to expand its three departmental cost centers to eight, each with its own overhead cost allocation rate. As a result, it appears that the total costs for four of its six radios will increase, while two will decrease. The case puts students in the role of having to (a) understand why such a result would occur; (b) explain the specific changes made in the cost allocation system; and (c) evaluate whether the changes are an improvement.
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Hydrochem, Inc. produces only one product — condutronic plates. The company uses an actual process costing system but is considering changing to a standard costing system…
Abstract
Hydrochem, Inc. produces only one product — condutronic plates. The company uses an actual process costing system but is considering changing to a standard costing system. Manufacturing costs consist of raw material, direct labor and manufacturing overhead and the company uses full absorption costing. Students are provided with account balance information at the beginning of the month and with information regarding the company's events and transactions during the month. Students are asked to prepare two income statements for the month and balance sheets as of the end of the month. One set of financial statements is to be prepared using the company's actual costing system, and the other set of financial statements is to be prepared using the proposed standard costing system. Students are asked to explain the differences between these two sets of financial statements and to take a position as to which set of financial information they prefer.
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Timothy M. Laseter and James Hammer
This disguised case examines the issue of outsourcing to a low-cost country based on a thorough analysis of competitive cost drivers. The case demonstrates that labor cost is only…
Abstract
This disguised case examines the issue of outsourcing to a low-cost country based on a thorough analysis of competitive cost drivers. The case demonstrates that labor cost is only one potential advantage and that transportation cost and other factors could more than offset labor savings in some product lines.
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Faeyee Electronics was an electronics company that manufactured and sold smartphones including XS and XT types. The management of Faeyee wanted to pursue the maximum contribution…
Abstract
Synopsis
Faeyee Electronics was an electronics company that manufactured and sold smartphones including XS and XT types. The management of Faeyee wanted to pursue the maximum contribution margin as much as possible, especially since they were faced with limited resources. It was necessary to apply analytical tools and cost accounting concepts to study this case including cost-volume-profit analysis, learning curve analysis, regression analysis, definitions of competitive products, constrained non-linear optimization, and contribution margin.
Research methodology
The case uses business analytics tools and cost accounting concepts, including regression models and constrained optimization approaches, to study how to maximize business outcomes, such as contribution margin and profits when limited business resources are available. The company and individuals are disguised.
Relevant courses and levels
This case can be used in any junior-, senior-, masters- or MBA-level managerial accounting course. Students need to have at least one course of introduction to statistics or instructors review required statistics concepts or techniques before assigning this case. Students are exposed to the challenges of deriving learning curve models, using regression analysis to study collected data and allocating limited resources to maximize contribution margin.
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It's panic time at Blackheath Manufacturing. Profits have been declining, so the owner's son comes to the rescue to run the company. He asks a consultant to determine what's…
Abstract
It's panic time at Blackheath Manufacturing. Profits have been declining, so the owner's son comes to the rescue to run the company. He asks a consultant to determine what's wrong. And the consultant has specific answers: The company's pricing guidelines are all wrong, there needs to be a budgeting system to reverse the downward slide in profits, and a former employee should be rehired. This case provides students with the data for constructing a production and raw-materials budget, flexible-expense budget, income statement, balance sheet, and cash budget. See also “Blackheath Manufacturing Company” (UVA-C-2197).
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Data Services provides flexible, scalable data processing and information storage to the fast-food industry. Sales have grown steadily, but the company has operated at a loss…
Abstract
Data Services provides flexible, scalable data processing and information storage to the fast-food industry. Sales have grown steadily, but the company has operated at a loss since its founding five years ago. Data Services management is enthusiastic about the company's prospects. The chief executive of Armistead, the insurance company that owns Data Services, is under pressure from corporate officers to slough off the subsidiary. A business analysis is done not only to help the CEO decide whether to continue investment in Data Services, but also to determine if the company is well managed. Information includes the day-to-day operations of Data Services, its sales process, profit and loss statement, revenue and expense analysis, and cost allocations.
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Sherwood C. Frey and Phil Lederer
This case and its companion, “Myerson Industries” (UVA-QA-0299), constitute the materials for a negotiating exercise. The exercise is a distributive-bargaining situation…
Abstract
This case and its companion, “Myerson Industries” (UVA-QA-0299), constitute the materials for a negotiating exercise. The exercise is a distributive-bargaining situation surrounding the negotiation of the price for the construction of a building (some minor opportunities exist for creating mutual value).
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Neha Seth and Monica Singhania
The purpose of this paper is to understand the situation of Accurate and then to consider possible options for Accurate to face competition in future. Several opportunities are…
Abstract
Learning outcomes
The purpose of this paper is to understand the situation of Accurate and then to consider possible options for Accurate to face competition in future. Several opportunities are also linked with certain drawbacks and hence by studying the entire mechanism, the decision makers of Accurate may decide on its future direction and how to go about it.
Case overview/synopsis
Accurate Weld Arc was established in New Delhi in 1993, his son. The company focused on manufacturing wire drawings and selling to niche customer segment. Due to this, they were operating at a modest turnover. At this juncture, the organization took two critical decisions, first, to enter the welding electrodes market which had a bigger target segment, and second, to hire a Marketing Head who conducted an extensive marketing research to recognize the need of customers and to identify differentiating factors for the organization. Later, the company made further investment in middle-gauge welding electrodes and its turnover climbed in the first year. After that, the company had set up a manufacturing unit in Raipur, Chattisgarh which generated huge profit and is now looking forward to spread its wings in other parts of the country.
Complexity academic level
This case may be used for postgraduate students, who are doing their specialization in finance and accounting.
Supplementary materials
Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
Subject code
CSS 1: Accounting and Finance
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Biju Varkkey and Nutan Samdani
Nokia India Pvt Ltd (NIPL) was part of Nokia Corporation, Finland. In March 2013, the Indian Income Tax department accused NIPL of evading taxes amounting to USD 3.5 billion…
Abstract
Nokia India Pvt Ltd (NIPL) was part of Nokia Corporation, Finland. In March 2013, the Indian Income Tax department accused NIPL of evading taxes amounting to USD 3.5 billion. Simultaneously, the market share of Nokia Corporation declined following increased competition from android devices. In September 2013, Nokia announced the sale of its global Devices and Services division to Microsoft Corporation. The Indian IT department freezed the assets of NIPL, disallowing transfer of assets and Microsoft excluded the Chennai plant of NIPL from the deal. In mid-April 2014, NIPL offered Voluntary Retirement Scheme (VRS) to its workers. Despite efforts by trade unions, the plant finally shut operations on November 1, 2014 leaving 30,000 direct and indirect employees jobless. The case discusses the labour relations impact in global manufacturing chains.
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This case introduces a framework for cost modeling. Two data sets (one for injection-molded plastic parts and another for compressors) allow students to apply the cost-driver…
Abstract
This case introduces a framework for cost modeling. Two data sets (one for injection-molded plastic parts and another for compressors) allow students to apply the cost-driver framework in conjunction with basic spreadsheet and regression analyses. Although obviously applicable in a course on supply chain management, the case can also be used to teach competitive cost analysis for strategic decision making.
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