First discusses full cost accounting, its uses, and the managerial choices involved in setting up a full-cost accounting system. Then discusses differential cost accounting, addressing the nature of costs and the subject of cost-volume-profit (CVP) analysis. Then examines a variety of special considerations that can complicate CVP analysis. Finally, discusses when differential costs, rather than full costs, should be used in an analysis, and identifies some of the complications involved in using them.

Outsourcing is a strategy used by many municipalities in an effort to provide high quality public services at a low cost. The underlying theory is that by having an external vendor provide a service, the city or town can take advantage of the vendor's experience and economies of scale. The result will be comparable or better quality services than could be provided by the municipality itself, at a reduced cost to the taxpayers, while still allowing the vendor to earn a profit. Unfortunately, theory and reality sometimes diverge. This note discusses why this can happen and what can be done about it.

This case addresses the transition from cash to accrual accounting. It also demonstrates some of the difficulties in comparing one firm's data with industry averages.

A gerontologist in Kaiser Permanente's Colorado region is concerned with the high and growing cost of treating the elderly population. She introduces a new care model, Primary Care Plus, using an interdisciplinary team of a primary care doctor, palliative care specialist, nurse coordinator, clinical pharmacy specialist, and behavioral and social service specialists. The team focuses on the highest-risk patients to see if the new, pro-active care model can improve patient, family, and provider satisfaction and lower Kaiser Permanente's total cost of care for this patient segment.

This case describes DTE Energy CEO Gerry Anderson's transformation from a hard-nosed, "old school" leader to an authentic, purpose-driven leader implementing positive change. Students follow along as Anderson begins re-thinking his approach to leadership from a cost-focus to a more holistic view that employees are not "simply factors of production" and that management by edict was not sustainable. But just as Anderson is slowly earning employees' trust, the recession of 2008 hits and DTE faces a potential loss of $175 million. Anderson is confronted with the biggest challenge of his career: should he lay off a large portion of the workforce to save the company? Such a move would undermine all he had been working toward in his new leadership style and would destroy the trust he had been trying to build in the company, but his management team sees no alternative. What should Anderson do? This is Case A of a three-case series which can be taught sequentially or as stand-alone cases. The cases describe the organizational transformation of energy utility company DTE Energy into a positive organization, focusing first on the personal transformation of DTE's CEO, Gerry Anderson (Case A); then on the transformation of the company (Case B) and finally on DTE Energy's advancement to the "next level" - positive social issues to improve the wider community and societal context in which the company operates (Case C).

This case depicts how DTE Energy expanded its internal momentum as a positive organization to encompass improving the broader community as well. The case opens at the end of 2015, with DTE's stock price having tripled since 2008 and the company having won Gallup's Great Work Place awards. DTE Energy CEO Gerry Anderson has articulated the vision of DTE as being a "force for growth and prosperity in the communities where we live and serve," but he wonders how he can operationalize such an expansive, intangible vision, particularly given its external focus. The case describes DTE's work with the Center for Positive Organizations at the University of Michigan's Ross School of Business, detailing the characteristics of positive leadership, applying authentic leadership, connecting to purpose and calling, and DTE's Positive Organization Framework. Students will be challenged to think of additional ways that for-profit organizations could become transformational forces for positive social good. This is Case C of a three-case series which can be taught sequentially or as stand-alone cases. The cases describe the organizational transformation of energy utility company DTE Energy into a positive organization, focusing first on the personal transformation of DTE's CEO, Gerry Anderson (Case A); then on the transformation of the company (Case B) and finally on DTE Energy's advancement to the "next level" - positive social issues to improve the wider community and societal context in which the company operates (Case C).

This case focuses on DTE Energy's transformation into a high-performing positive organization. When the case opens in 2010, DTE Energy has not only survived the 2008 recession but has had one of its most successful financial years in the company's history. CEO GerryAnderson had asked people to contribute ideas to save the company and avoid layoffs, and they had willingly done so. But now that the crisis is over, he wonders: can that energy be sustained? What can he, as a leader, do to maintain the momentum? The case traces the birth of DTE's new vision and execution of it, particularly with regard to HR practices, authentic communications, and metrics. The case covers 2010-2015 and includes exhibits of the tools the organization used. This is Case B of a three-case series which can be taught sequentially or as stand-alone cases. The cases describe the organizational transformation of energy utility company DTE Energy into a positive organization, focusing first on the personal transformation of DTE's CEO, Gerry Anderson (Case A); then on the transformation of the company (Case B) and finally on DTE Energy's advancement to the "next level" - positive social issues to improve the wider community and societal context in which the company operates (Case C).

On October 29, 2012, Superstorm Sandy made landfall near Atlantic City, New Jersey. Sandy's massive size, coupled with an unusual combination of meteorological conditions, fueled an especially powerful and destructive storm surge, which caused unprecedented damage in and around New York City, the country's most populous metropolitan area, as well as on Long Island and along the Jersey Shore. This two-part case study focuses on how New York City prepared for the storm's arrival and then responded to the cascading series of emergencies - from fires, to flooding, to power failures - that played out as it bore down on the city. Profiling actions taken at the local level by emergency response agencies like the New York City Fire Department (FDNY), the case also explores how the city coordinated with state and federal partners - including both the state National Guard and federal military components - and illustrates both the advantages and complications of using military assets for domestic emergency response operations. Case number 2124.0

The SEKEM initiative, headquartered in Cairo, Egypt, was an unusual social enterprise by any standard. It produced organic products; provided health, education and arts programs to the local community; and-more broadly, sought to create a sustainable community that explicitly cultivated the human potential of its members. It reflected the vision of its charismatic founding director, Ibrahim Abouleish, who had run SEKEM with his son, Helmy Abouleish for more than 30 years. In 2017, SEKEM marked its 40th anniversary-a time for celebration, and also of transition for the initiative. Some of its challenges were typical of any organization at midlife. But for SEKEM, these were coupled with the loss of SEKEM's passionate leader, Ibrahim Abouleish, who died in the summer of 2017. In addition, SEKEM faced the challenges of operating in a country that had, in rapid succession, experienced a revolution, military coup, and economic collapse. The case details the history and evolution of this unusual social enterprise and tells of the dilemmas facing Helmy Abouleish and his leadership team at this critical juncture. Case number 2126.0

Due to Argentina's vast energy resources, its modern political history has been deeply intertwined with its "energy" history. In its many military coups and political uprisings, typically each government used artificially low energy prices to keep the population subdued and the revenues from YPF to finance these subsidies or worse to line their pockets. Many of the interventionist measures that Argentina's governments imposed on the energy sector, such as price controls and at the most extreme nationalization, made it nearly impossible for private sector energy players to succeed or for the public sector to invest in its development. After severe blackouts in the summer of 2014, many Argentines in the country's most populous cities were outraged and went to the streets in protest. These blackouts were specifically due to the increased power usage for air conditioning in the summer months but were more generally caused by the removal of subsidies for power companies and a dearth of public and private infrastructure investment. Into this environment, President Macri was elected and he made energy reform one of the key pillars of his administration. Furthermore, he invited the private sector back into Argentina to immediately alleviate its power generation deficiencies. In this case, the students will examine the ways in which Bruce Wayne and his team may structure and diligence this electric power infrastructure deal. Particularly, the students should come to understand how the deal structure could allow EFC to both gain the most benefit but also shift the risks away from their company. Key questions that will be explored include: What makes investing in infrastructure particularly risky? Can private investment close the world's infrastructure gap? Can political risk be mitigated?

Eneco Group, the second largest utility company in the Netherlands, launched a smart thermostat, Toon, that served as a platform for energy management services. Toon quickly became the gold standard for smart homes in the Netherlands. In January 2017, top management needed to discuss the strategic priorities to keep Toon’s lead and hold off the competition.

Intelligent Avionics (IA) was an entrepreneurial company launching three inflight entertainment (IFE) systems. In April 2012, with a small development team working on the IFE system designs simultaneously, the time had come to meet with IA’s leaders to determine where the company should focus its efforts. The company’s vice-president of marketing contemplated which lines the company should bring to market and wondered how IA should market and launch its offerings. In addition, organizational and locational issues gnawed at him. He struggled with the company’s virtual structure, given that IA was composed of fewer than 15 staff members living in five different countries. As he contemplated how the structure was affecting IA’s effectiveness, he asked himself who IA’s target market should be.

Ganzeb Microfinance Institution (Ganzeb) was formed as an extension of an indigenous non-governmental organization, and provides loans to rural Ethiopians to fund their business ventures. The microfinance industry is heavily regulated by the Ethiopian government, and the political landscape is not very stable. Since its inception in 2000, Ganzeb has been run by the same chief executive officer. The company flourished until 2006, when its financial performance declined as a result of an increasing number of defaulting loans from clients. Many other organizational problems have also emerged, which are quickly degrading the institution’s work. Now, in late 2008, the chair of the board of directors is faced with threats from the National Bank of Ethiopia: he must fix the problems or lose Ganzeb’s licence to operate. The board chair is being asked to meet with the bank to talk about the situation and the proposed solutions. He must figure out how to fix the problems of high turnover among staff, poor financial performance, and a lack of communication between the different levels of the organization.

AWARD-WINNING CASE - Women in Business Category, 2019 European Foundation for Management Development (EFMD) Case Writing Competition. In August 2017, a memo written by an engineer at Google LLC (Google) was leaked to the public, revealing fractured communication and leadership at Google. Labelled an “anti-diversity manifesto” by its detractors, the memo set off a public controversy over the causes of gender disparities in tech and the limits of free speech within organizations. With ideological divisions across the company, open disdain expressed between colleagues, and the credibility of leaders at a low, the new vice-president of diversity needed to establish trust and candour among the employees and move the company forward.

Soon after being named regional managing partner for Ernst & Young (EY) China in September 2009, Albert Ng reflects on the enormity of challenges facing EY China. Despite EY Global's commitment to the China practice, EY China's growth agenda has been reversed, post global financial crisis. The smallest of the Big Four global accounting firms in China, EY China's reputation has weakened in the market, morale of its professionals has plummeted, and it faces the threat of a major lawsuit. Ng is musing how to address all these challenges confronting EY China.

The case outlines how regional managing partner (RMP) Albert Ng steered Ernst & Young (EY) China through a period of significant growth from 2009, when it was the smallest of the Big Four firms in China, to 2017, by when it had become the second largest firm. Partners worldwide felt a sense of shared achievement, since EY Global had come together with China leadership to invest in building a strong China practice that was integral to all of EY. But Ng was not resting content. he believed that EY China was at a critical juncture. Chinese economic growth, which had partially fueled EY China's dramatic rise, was slowing down, just as competition was intensifying. Was EY China prepared to face the challenges that lay ahead?

In March 2018, a report on workplace harassment issues was brought to the chief executive officer of Nike, Inc. (Nike), Mark Parker. The report was a result of a covert survey conducted by the female employees at Nike headquarters in Beaverton, Oregon, after the company’s human resources (HR) department failed to respond to the women's repeated complaints. Soon, several senior executives left Nike. Although Parker took several steps to strengthen HR, some employees wondered whether the women’s complaints had been handled appropriately. Nevertheless, according to experts, the behaviour the women described did not amount to harassment in legal terms. Was Parker’s response to the survey a matter of reputation management or of genuine ethical concern? Why did the HR department not respond to the female employees’ complaints earlier? If a case of harassment in legal terms could not be made against the executives, should they have been let go? If senior executives like Edwards committed or condoned harassment, should Parker allow those executives to receive severance packages?

Hosoo was a kimono and textile company, established in 1688 as a traditional Nishijin weaving company. The 11th generation president of the company, Masao Hosoo, had transformed the business from a producer of premium kimono fabrics and kimonos for the luxury market in Japan to a globally respected textile producer for some of the world’s top brands. A great deal of the company’s success in the global market could be attributed to the master craftspeople of Japan. This innovative spirit guided endless improvements to weaving and textile development, allowing the highly specialized Nishijin textiles to be woven for use beyond the kimono market. Inspired by the results of their innovation and their global success, and driven by the collapsing kimono market in Japan, Masao and his son, Masataka, set a goal in 2018 to establish Hosoo as an iconic, international house of kimono, relying on innovation to reinterpret what a kimono was, how it was used, and what it meant within a global fashion market.

Despite fast advancements in technology and production capacity, China Railway Construction Corporation (CRCC) faced a variety of challenges and risks on its path to build profitability in the global high-speed rail (HSR) market. Some of these challenges arose from competition between CRCC and nations with competing HSR technology and international expansion plans. Other challenges were related to the country of origin and its effects on perceptions about the product and brand positioning. In 2018, CRCC was facing intensive competition and complicated international environments, and it needed to develop an effective risk prevention and management scheme in order to compete and succeed through global expansion.