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A distiller increases whiskey production and income declines because of accounting methods in use. Questions are raised regarding the treatment of expenditures which can be classified as production, inventory, or period costs. The necessary aging process raises added questions about prior period restatements and needed financing. A rewritten version of an earlier case by R.F. Vancil and R.H. Deming.

Spreadsheet Supplement for case 189065.

Roy Rogers Restaurants is a subsidiary of Marriott Corp. which sells franchises to own and operate standardized fast food restaurants. Many franchise owners operate more than one restaurant. One of these, presently operating 16 restaurants and committed to develop 30 more by 1992, has asked to remove the salad bar from some of his restaurants. The salad bar is a unique feature required by Roy's franchise agreement, and allowing its removal threatens standardization of the chain.

Faster and more flexible information technology can be converted into positive programs to help get and keep customers. It can revitalize the traditional corporate control functions. While the new technology offers managers new options for gathering, organizing, and using data, it opens new horizons for new results. Companies can get constant updates on field operations. Organizations confined by historic accounting or reporting formats can now arrange information however best suits their purposes. Technology has the power to transform the information and control function.

Pinnacle Mutual is one of the largest mutual life insurance companies in the world. Offering a full range of financial services, it competes with a broad group of financial service providers. In an effort to compete more effectively, Pinnacle adopted GAAP accounting and established profit centers in 1985. The case contains a description of the processes used to create profit centers and some of the implementation problems that were encountered.

At the end of the budget cycle, the manager must test whether plans are feasible given financing arrangements and constraints. Cash needs are great due to seasonality. Needed loans must be calculated at five separate dates, and financial position projected. This is a rewritten version of Hanson Industries (B) and (C).

Loss of a major contract has reduced production volume below the level expected when budget and standard costs were determined. Apparently favorable results for monthly operations result from reduced volume rather than operating efficiency. Rewritten version of a case by the same author.

Provides a complete description of the processes used in preparing a budget (annual operating plan). Starting with basic product line decisions, management prepares a budget that integrates production and marketing within constraints of financial feasibility. The budget is the basis for internal control of operations and for negotiations with banks for seasonal financing.