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Spreadsheet supplement for case number 187088.

Describes a corporation that switches its philosophy of budgeting from "stretch" targets to "minimum performance standard" targets. The change has implications for management incentives, compensation, and corporate planning. Early results suggest the concept was not implemented well, even if it was a good idea.

Describes a dispute between the owners of the major league baseball teams and the players' union about the profitability of the baseball teams. The issue is important because of the ongoing collective bargaining negotiations. A consultant is brought in to decide whether a representative team, the Kansas City Zephyrs, is making or losing money. He has to settle a number of accounting disputes about roster depreciation, signing bonuses, deferred compensation, and stadium costs.

Describes a company that had problems of fraudulent financial reporting. Provides an opportunity to discuss the roles of top management, financial management, internal and external auditors, and the audit committee of the board of directors in such circumstances. The problems relate to premature revenue recognition, inadequate reserves for inventory obsolescence, and possible insider trading.

The first in a series of cases that explores the causes and methods of fraudulent financial reporting and the lines between acceptable, unethical, and fraudulent behaviors.

Describes events occurring over a four-year period in one division of Graves Industries. The division goes through a business cycle and uses several methods of managing earnings to meet its budget targets. The purpose of the case is to allow the exploration of the causes of the unethical (or fraudulent) behaviors and ways in which they could have been prevented, or at least detected more effectively.

Describes events occurring over a three-year period in a division of Graves Industries. The division is being squeezed for profit, and managers in the division get involved in some fraudulent financial reporting schemes involving revenues and capitalization of expenses. A number of issues are raised concerning causes of the frauds and methods of preventing and/or detecting them.

Describes a conflict between the corporate controller and a division president about labor standards, which the division purposefully overstates to protect its margins. Illustrates the multiple roles of standards, and the roles of controllers and line management in resolving such conflicts.

Spreadsheet Supplement for case 186136.

Describes a dilemma faced by Citibank's country manager for Indonesia. His superiors have asked him to raise his profit goal for 1984. But to produce increased profits he would either have to reduce the amount lent at below-market rates, particularly to prime customers and government entities, or to increase the bank's sovereign risk at the time of a downturn in the Indonesian economy. The goal is to illustrate the role of country managers and some of the difficult tradeoffs they face.

Describes the controls used in the casino over the blackjack game and cash stocks, and movements of cash. Also describes the results measures available in the casino and their limitations for control purposes.

Spreadsheet Supplement for case 184048.

Describes a conflict between the metropolitan (branch banking) and treasury groups at the bank. The issue is which group should receive the profits generated by a product involving both: Due bills. It is a form of transfer pricing problem, but in a unique (i.e., service) setting.

Spreadsheet Supplement for case 187047.

Two young and inexperienced MBAs buy a virtually bankrupt company. They design a decentralized control system organized around profit centers.