Volume 4 Issue 3
IMA Educational Case Journal
THIS CASE IS ABOUT A GROWING INTERNATIONAL food marketing and distribution firm that is not able to produce accurate product costs or accurately track inventory. Impcorp’s business model involves sourcing quality food prod¬ucts from Italy for major North American retail chains. Impcorp, the fictitious name for a real firm, takes ownership of these food products, the majority of which are shipped directly from suppliers to retail chains or to public warehouses to wait for shipment. The existing accounting system does not provide the required processing and information needed to track inventory and to support the business model in terms of specifying the costs and profits of suppliers, products, and retailers. Moreover, the clients—North American retail chains—require IT sophistication beyond what the existing system is delivering. There is an option to replace the existing accounting system. Students are required to determine the current problems and how they can be resolved.
Keywords: management accounting, teaching case, enterprise resource planning systems, costing, and food importing.
A GOVERNMENT-OWNED, MONOPOLY AIRLINE IS scheduled to be privatized. A group of young managers has banded together to undertake an analysis of the current situation and recommend a post-privatization strategy. Using data gathered by the group, students are asked to prepare an analysis of market segment profitability. In addi¬tion they are asked to estimate the breakeven passenger volume for one of its routes. After doing a SWOT analysis students are asked to prepare and present a recommendation for a strategy to the firm’s executive committee.
Keywords: activity-based costing, SWOT analysis, and strategy recommendation.
Sometimes Accountants Fail to Budget
Gail Hoover King
THE CASE IS BASED ON THE ACTUAL EVENTS for a nonprofit organization. Students are required to analyze the information given in the case to determine what information is relevant for analyzing variances, determine the reason for variances, and provide suggestions to avoid further losses. In addition, the case simulates a real-world situation where all relevant information is not available or not in a format that allows for detailed analysis.
Keywords: budgeting, variance analysis, not-for-profit, and volunteer board’s responsibility.