Monroe Clock Company, a producer of electrical timers, is trying to decide how to price a new device by considering variable versus fixed costs, the relevance of certain costs, and information regarding capacity utilization. The A case can be taught independently or in conjunction with the B...

Monroe Clock Company, a producer of electrical timers, is trying to decide how to price a new device by considering the method of overhead allocation and its impact on the cost of the household timer. The B case can be taught independently or in conjunction with the A case (UVA-C-2228), which...

John Johnson, the owner of the FinePrint Company, is presented with several opportunities to consider: (1) whether to accept a one-time special printing order (the A case, UVA-C-2193), (2) whether to outsource some of his printing to another printing company (the B case, UVA-C-2194), and (3)...

John Johnson, the owner of the FinePrint Company, is presented with several opportunities to consider: (1) whether to accept a one-time special printing order (the A case), (2) whether to outsource some of his printing to another printing company (the B case, UVA-C-2194), and (3) whether to both...

John Johnson, the owner of the FinePrint Company, is presented with several opportunities to consider: (1) whether to accept a one-time special printing order (the A case, UVA-C-2193), (2) whether to outsource some of his printing to another printing company (the B case), and (3) whether to both...

This case exposes students to (1) basic assumptions in the creation of an operating plan; (2) analyzing the difference between actual and planned financial results, including the development of flexible expense budgets, quantifying the profit impact of various business risks that impact profit,...

This technical note discusses accounting for stock options. It includes a discussion of the business considerations in issuing stock options, the evolution of accounting for stock options, accounting for stock options using the intrinsic-value method and the fair-value method under U.S. GAAP,...

This case requires students to prepare an analysis of Microsoft Corporation's financial statements and footnotes to understand the impact of its use of stock options. In addition to a general analysis of Microsoft's use of stock options and their impact on the financial statements, students...

This case is designed for an MBA course on management planning and control systems, an MBA course on mergers and acquisitions, an MBA course on strategy implementation, or any course on executive-compensation systems. It exposes students to executive-compensation plans, the design of...

We examine the role of accounting in CEO equity compensation design. For a sample of ExecuComp firms in 1995-2001, we find that financial reporting concerns are positively related to stock option use and total compensation, and negatively related to the use of restricted stock. We confirm our...