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Fil Metaillique de Briteque Limitee (FMBL), a small Montreal company, had to decide whether or not to offer a discounted price on their most widely-sold product in order to recapture a large ex-customer. After doing a qualitative size-up of the firm and the industry, students are expected to compare the new lower price to FMBL's costs to determine if accepting the offer is in the best interest of the company. A consideration of pricing policy, strategy and profitability are central to the decision.

Management accounting techniques, such as cost-price relationships and the evaluation of sub-units, are discussed in this introductory note. Readers are exposed to various costing methods (direct costing, absorption costing and full costing) and their appropriate uses. As well, some of the problems of cost allocations are discussed.

The owner of a charter airline wishes to determine why the business experienced yet another unprofitable year of operations. He decides to produce an income statement reflecting the profits generated or losses incurred by each plane so that a decision could be made about the fleet mix for subsequent years.

This note introduces students to some of the options that managers consider when financing is needed. Internal financing options such as improving operating cashflow, adjusting working capital and disposing fixed assets are examined. The advantages and disadvantages of external financing options (i.e., debt or equity) are also briefly covered.