Volume 9, Issue 4
IMA Educational Case Journal
Russell Tietz, University of Mount Union
Wendy Tietz, Kent State University
Linda Zucca, Kent State University
THIS CASE, BASED ON A TRUE STORY, examines the misappropriation of funds by an administrator in the Beaumont Independent School District (BISD) in Beaumont, Texas. Patricia Adams Lambert diverted more than $500,000 of funds while she was a BISD employee. Students are asked to apply the Committee of Sponsoring Organizations of the Treadway Commission (COSO) 2013 Internal Control–Integrated Framework to evaluate internal controls; students will also evaluate an ethical dilemma. The case is particularly unique because it is designed to be used in introductory financial and managerial accounting classes as an example of internal controls. The case can also be used in upper-level accounting classes as appropriate.
Kühle Engler Kraftwagen AG, Part 2: Evaluating Investments for the 2025 Energy Efficiency Challenge
Marc Wouters, Professor of Management Accounting, Karlsruher Institut für Technologie (KIT)
Marcus Kirchberger, Controller, Porsche
Frank Stadtherr, Karlsruher Institut für Technologie (KIT)
THIS CASE COVERS NET PRESENT VALUE (NPV) MODELING OF a capital equipment investment decision. Students consider dilemmas and tensions between energy efficiency and financial objectives and address organizational issues (such as preselection of investment alternatives) and strategic investment bundles. That means that the impact of energy-related investments might be different in the context of related and mutually reinforcing investments. Finally, this teaching case explains to students how uncertainty in investment decisions can be modeled with Monte Carlo simulation.
Pounds of Trouble: Analyzing Exchange Rate Variances
Michael A. Harris, Graduate Student, Brigham Young University
Steven D. Smith, Associate Professor, Brigham Young University
Monte R. Swain, Professor, Brigham Young University
William B. Tayler, Associate Professor, Brigham Young University
THIS CASE DESCRIBES A BUSINESS DILEMMA arising from (1) the failure to consider foreign exchange rates and (2) unfavorable movement of exchange rates against the currency in which budgets are prepared. It is designed to be used as a complement to, and extension of, traditional cost variance content in management accounting curricula. The case can be taught in intermediate cost accounting courses at the undergraduate level, or in graduate-level courses that focus on performance management and incentives or that focus on international accounting. Students benefit by learning about how typical price variances can be “unpacked” to provide deeper variance insights, by exploring how a traditional variance framework can be extended to the analysis of other cost categories, and by considering the critical role of exchange rates in business planning and forecasting in multinational organizations.