Resources & Publications

IMA Educational Case Journal
ISSN 1940-204X
Volume 4, Issue 2

À Votre Santé: Product Costing and Decision Analysis in the Wine Industry
Priscilla S. Wisner

À VOTRE SANTÉ (AVS) REQUIRES STUDENTS TO ANALYZE financial and operational data to create a contribution margin income statement, apply the concepts of relevant costs and opportunity costs to support strategic decision making, and analyze product profitability. The case uses information taken from a small wine operation in Napa Valley, somewhat simplified to reinforce the case analyses and teaching points. AVS has been used in MBA and executive education managerial accounting classes, and would be most appropriate for a graduate-level accounting or MBA course or for an advanced undergraduate course.
Keywords: decision analysis, product profitability, and contribution margin analysis.

 

Jane Ashby Sinclair Art Museum
Howard O. Rockness, Ph.D., Joanne W. Rockness, Ph.D., CPA, Charles L. Earney, CPA, Stacy J. Ankrum, MBA

THIS CASE ILLUSTRATES THE MANAGEMENT CONTROL and financial issues faced by a museum of art located in a medium size city in the southeastern United States. The museum faces a crisis situation when the bank fails to renew its unsecured line of credit and calls $742,000 of debt. The case focuses on the decisions that must be made by the chairman of the board and the board of directors of the museum in a short time frame in the face of the 2008-2009 financial markets collapse, investment losses, reduced operating revenues, and criticism by a former board member and the local press. The case allows discussion of numerous issues involved in the management and control of not-for-profit organizations as well as accounting reporting issues, which may obscure both the solvency and actual assets of the entity. The case allows for exploration of both the accounting issues and the management issues associated with responding to the bank’s request for repayment of the loan. The case provides a basis for contrasting decision making and controls in for-profit organizations, where shareholder value may be a primary focus, with decision making and controls in not-for-profit organizations, where operating revenues are only one of several sources of funds and multiple stakeholders have interest in competing and potentially differing outcomes. This case is appropriate for a management controls course that includes not-for-profit organizations, a not-for-profit course, junior or senior level accounting courses that contain a segment in not-for-profit accounting, graduate courses in not-for-profit management and control, MBA courses in accounting, control or financial management and executive programs for not-for-profit board of directors members and managers.
Keywords: not-for-profit, board of directors, museum management and control, control systems, and financial management.

 

Join Today

Start receiving the value enjoyed by more than 70,000 accounting professionals worldwide. Join now.

If you are already an IMA member, please log in now.

For questions about subscriptions and academic use, please contact:

Tara Barker
tbarker@imanet.org
(800) 638-4427, ext. 1535
From outside the U.S.:
+1-201-474-1535


© 1997–2014, Institute of Management Accountants, Inc.   10 Paragon Drive, Suite 1, Montvale, NJ 07645-1760   (800) 638-4427 or +1 (201) 573-9000 

Site Map  |  Site Help and FAQ  |  IMA Policies