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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.

Interviews with nearly 150 executives in 13 companies show that transfer pricing schemes are a means of generating information and control for implementing corporate, business unit, and product strategy. A company's transfer pricing policy, which includes whether to source inside or out, and the way it is administered depend on the situation and the direction of the organization. Companies can be categorized into four "pure" types: competitive, cooperative, collaborative, and collective. Each type has its own set of problems and characteristics. Problems common to all types include performance problems, interpersonal disputes, power imbalances, demand fluctuations, and product pricing. Regardless of the approach used to set the transfer price, unit managers will agree to it if they feel that top management is treating them fairly.

Spreadsheet Supplement for case 187047.

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.

Bloomfield has to decide what price to charge for fertilizer for the upcoming selling season. He is facing competitive pressure to reduce his price and realizes that if he maintains his price, he will certainly lose volume next year.

Bloomfield has to decide what price to charge for fertilizer for the upcoming selling season. He is facing competitive pressure to reduce his price and realizes that if he maintains his price, he will certainly lose volume next year.

The mechanics of preparing projected financial statements are described to provide an understanding of the methods used in preparation, and to outline how these projections can be modified and used in financial planning and management decision making.

This note discusses cost behaviour, break-even analysis contribution and projected income statements. In addition to the theoretical framework, two examples are presented and analyzed.

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

Westinghouse had just issued its annual report to shareholders for the year ending December 31, 1973. The report indicates that sales have increased to a record $5.7 billion but that net income is down almost 20% from its record level of $199 million in the previous year. The chairman's letter to shareholders suggests that while earnings were not very good in 1973, he expects them to recover in 1974. May be used as either the 1st or 2nd case in a 2nd-year MBA course dealing with the analysis of corporate financial reports. The objective is to introduce students to the concept of "quality of earnings." Much of the focus of the case deals with the flexibility management has in making accounting decisions which determine net income.

An entrepreneur was investigating the feasibility of opening an Italian fast food franchise called Rosa's Palas. He spoke to the franchisor concerning a few franchise break-even points, and his return on investment for his restaurant. With this information, the entrepreneur felt he could decide whether he would invest in the franchise.

Many executives have attempted to simplify the reporting procedures of fund accounting by using business practices. However, nonprofit enterprises have financial structures and objectives different from those of business. Managers of nonprofit institutions need greater familiarity with the requirements of nonprofit financial structures and accounting practices. A review of the components of fund accounting and an illustrative case help clarify the principles.

Based on a preliminary analysis, the inventor of a licence plate protector believes the product would be viable. He collects information on the investments and costs necessary for production, and develops a selling price. But has he correctly identified the fixed, variable and step costs in his analysis?

Mencotti Wine is considering a new bottle labelling machine. The president wants to analyze a number of alternative investment decisions using the net present value approach. He must consider the income tax effects including the capital cost allowance on fixed assets.

The management of Hanson is examining its near-term cash needs and the possible longer-term generation of earnings and cash.

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.

An administrator of a neighborhood health center is considering changing his cost accounting system from a single cost per visit to a cost per visit for each department in the center. Used to illustrate several issues related to cost accounting in health care: decisions on cost objectives and cost centers; overhead allocation mechanisms; the distinction between service and production cost centers; and others. Requires preparation of a simple step-down.

Spreadsheet Supplement for case 178189.

Spreadsheet Supplement for case 178126.