Management Accounting Case Book

Raef A. Lawson (New York, NY) is the Vice President of Research & Policy at the Institute of Management Accountants with proven success in designing and implementing world class research and policy programs. Lawson has extensive senior leadership experience in diverse settings, including for-profit and not-for-profit organizations. Additionally, he is an award-winning author, global speaker and media contributor in the areas of performance management, sustainability, business ethics, corporate governance and accounting education.

I. Business Leadership and Ethics

Trust May Breed Trouble: Fraud Opportunities and Ethics at Saintly Church 5
Cecily Raiborn, Janet B. Butler, Nathan H. Cannon, and Randall F. Young

Diamond Foods, Inc. 11
Jomo Sankara and Deborah L. Lindberg

Sunk Costs: What Costs Do You “Sea”? 17
Marty Stuebs, Cari Edison, and Katy Hurt

The A-12 Stealth Bomber: Escalating Commitment to a Failing Project 25
David S. Christensen and Robin Boneck

Jensen Pharma: A Governance Role Play 33
J. Kay Keels and Norman T. Sheehan

II. Operations, Process Management, and Innovation

General Lab 43
Oriol Amat and Martí Guasch

Autoliv, Inc.: Using Lean Practices to Improve the A/P Reconciliation Process 59
Rosemary Fullerton, Staci F. Gunnell, and R. Chance Murray

Sometimes Accountants Fail to Budget 65
Gail Hoover King and Jane Saly

Tri-Cities Community Bank: A Balanced Scorecard Case 71
Tom Albright, Stan Davis, and Aleecia R. Hibbets

Creating a Lean Enterprise: The Case of the Lebanon Gasket Company 79
Peter Brewer and Frances Kennedy

III. Planning and Decision Making

Hula Island: Strategic Decisions Involving Costs and Benefits of Internet Advertising Programs 87
Stephen C. Hansen and Tom Albright

XYZ Company: An Integrated Capital Budgeting Instructional Case 93
David E. Stout, Raymond J. Shaffer, and Jeremy T. Schwartz

The Glenridge Retail Development 101
Regina M. Anctil, Michael E. Borneman, and Theodore J. Long

Cat & Joe’s Pig Rig: Should We Stay or Should We Go? 113
Tony Bell and Andrew Fergus

Over-land Trucking and Freight: Relevant Costs for Decision Making 119
Thomas L. Albright, Paul Juras, and Russ Elrod

Patterson Manufacturing 125
Shane Moriarity and Andrew Slessor

Pikesville Lightning: Evaluating Strategic Business Expansion Opportunities 129
Thomas G. Canace and Paul E. Juras

IV. Risk Management and Internal Controls

The Le-Nature’s Inc. Fraud: What Happened and Why? 137
Michael C. Knapp and Carol A. Knapp

West Coast Equestrian Association 145
Doug Kalesnikoff, Vince Bruni-Bossio, and Suresh Kalagnanam

Out of Control: Lax Procedures at National Capital Trust? 151
Ron Messer

The Moulder Company: Alternative Strategies for Toxics Use Reduction 159
George Joseph and Mark Myles

A Declaration of War: A Case of Competition in the Video Game Industry 169
Nicholas J. Fessler

SuperHeroes LLP: A Super Management Control Case 181
Norman T. Sheehan and Ganesh Vaidyanathan

V. Strategic Cost Management

The Gatekeepers: A Case on Allocations and Justifications 189
David Hurtt, Bradley Lail, Michael Robinson, and Martin Stuebs

Product Costs: Application in an Insurance Company 197
Scott McGregor

Dynamic Medical Solutions: Expanding the Application of Cost Management Principles to Channel and Customer Profitability Analysis 215
Casey McNellis and Ronald F. Premuroso

Product Costing at Fine Foods: Is It a Symptom or the Problem? 221
David Axelsson, Marcus Fogelkvist, and G. Cunningham

TransGlobal Airlines 229
Shane Moriarity, Laura Hopkins, and Andrew Slessor

Alternative Costing Methods: Precision Paint Shop’s Dilemma 237
Eileen Peacock and Paul Juras