MGAC03H3 – Summer 2026
Intermediate Management Accounting
Case Assignment 1
Case #1 Submission Instructions
Due date: 11:59 PM on Sunday, July 12th, 2026
Format:
1. This is a group case assignment.
2. The case should be typed, double-spaced on letter-size paper using one-inch
margins.
3. Maximum length is 6 pages or approximately 1,200 words, exclusive of tables,
appendices (4 page max) and references and 12-point Arial font or equivalent.
A maximum total of 10 pages for submission. Written response beyond the
page limit will not be marked.
4. Assignments must be submitted in Quercus (under “Hand in Case
Assignment”). You need to submit 1 word document and 1 excel file. You
must name your file as follows: “2026SC03Case1JaneDoe998998998”. The
first page of your case assignment must indicate the student’s name, student
number and lecture section on the top of the page. Time extensions cannot be
granted.
5. On the due date, an electronic copy will also be submitted to Turnitin. Normally,
students will be required to submit their course essays to Turnitin.com for a
review of textual similarity and detection of possible plagiarism. In doing so,
students will allow their essays to be included as source documents in the
Turnitin.com reference database, where they will be used solely for the purpose
of detecting plagiarism. The terms that apply to the University's use of the
Turnitin.com service are described on the Turnitin.com web site.
6. In general, no late assignments will be accepted except for any unusual
circumstances pre-approved by the instructor. When this happens, the student is
required to provide proper documentation and discuss the situation immediately
with the instructor to sort out the submission due date. Depending on the
situation, the instructor reserves the right to possibly impose a penalty mark for
the late submission or defer the weighting of the assignment to the final exam.
, QUESTION
In 2016, Kevin Stone and Tom Stevenson started a telephone company by the name of
TekTower Inc. (referred to as “TekTower”, “TTI”, or “the Company”). The Company
purchased its own telephone towers, which ultimately allows TTI to get higher quality
reception for its consumers in Canada so that TTI customers can interact with people
within Canada seamlessly. The Company was created with the mission of providing a
seamless experience for telephone users/mobile phone users to communicate with
people on the other end without any interruptions. The Company has been successful in
achieving this mission within Canada through the telephone plans it sells to consumers;
however, they have not been performing well on their long-distance plans or roaming
packages as consumers complain about poor reception. Most of our customers that
obtain long-distance plans normally communicate with people within North America.
As you may know about the telecommunications industry, the market is very competitive.
There are high barriers to entry as you need to make substantial investments in capital
assets in order to be a successful company. Many of the more established telecom
providers have their own telephone towers across the world, which allows them to obtain
higher quality cell-phone reception, resulting in consumers being able to communicate
better with others anywhere they go. Cell-phone providers that do not have the adequate
amount of capital to fund substantial investments usually form agreements with the bigger
players in the industry so that they can share signals for their customers. Fortunately,
TTI was in a great position to start as the founders of the Company had substantial capital
to invest in telephone towers in Canada so that they can provide better services to its
customers at a reasonable price.
Aside from providing telecommunications services, TTI also operates the following
business lines:
- Manufacturing and selling semi-conductor chips (the “Semi-conductor division” or
the “SC division”)
- Conducting online and telephone surveys on behalf of research companies (the
“Survey division”).
The SC division operates out of one factory in Ottawa, Canada. We create semi-
conductors, which are parts that are used in most electronic gadgets we use in our daily
lives, including phones, laptops, cars, etc. As you know, there was a world-wide shortage
in semi-conductor chips recently due to a stoppage in production in 2020. We have
resumed production in early 2021 and have continued to be successful in producing semi-
conductors. In fact, we are one of the top 5 semi-conductor producers in Canada. We
have never been so proud.
We also started a survey division in 2021. This division was opened for purposes of
obtaining market data on behalf of research companies. Many market research
companies would reach out to us to help with getting a wider reach on conducting surveys
with people over the phone (or online). We offer to collect the data and either offer to just
remit the data back to the market research company or collect the data and perform some
Intermediate Management Accounting
Case Assignment 1
Case #1 Submission Instructions
Due date: 11:59 PM on Sunday, July 12th, 2026
Format:
1. This is a group case assignment.
2. The case should be typed, double-spaced on letter-size paper using one-inch
margins.
3. Maximum length is 6 pages or approximately 1,200 words, exclusive of tables,
appendices (4 page max) and references and 12-point Arial font or equivalent.
A maximum total of 10 pages for submission. Written response beyond the
page limit will not be marked.
4. Assignments must be submitted in Quercus (under “Hand in Case
Assignment”). You need to submit 1 word document and 1 excel file. You
must name your file as follows: “2026SC03Case1JaneDoe998998998”. The
first page of your case assignment must indicate the student’s name, student
number and lecture section on the top of the page. Time extensions cannot be
granted.
5. On the due date, an electronic copy will also be submitted to Turnitin. Normally,
students will be required to submit their course essays to Turnitin.com for a
review of textual similarity and detection of possible plagiarism. In doing so,
students will allow their essays to be included as source documents in the
Turnitin.com reference database, where they will be used solely for the purpose
of detecting plagiarism. The terms that apply to the University's use of the
Turnitin.com service are described on the Turnitin.com web site.
6. In general, no late assignments will be accepted except for any unusual
circumstances pre-approved by the instructor. When this happens, the student is
required to provide proper documentation and discuss the situation immediately
with the instructor to sort out the submission due date. Depending on the
situation, the instructor reserves the right to possibly impose a penalty mark for
the late submission or defer the weighting of the assignment to the final exam.
, QUESTION
In 2016, Kevin Stone and Tom Stevenson started a telephone company by the name of
TekTower Inc. (referred to as “TekTower”, “TTI”, or “the Company”). The Company
purchased its own telephone towers, which ultimately allows TTI to get higher quality
reception for its consumers in Canada so that TTI customers can interact with people
within Canada seamlessly. The Company was created with the mission of providing a
seamless experience for telephone users/mobile phone users to communicate with
people on the other end without any interruptions. The Company has been successful in
achieving this mission within Canada through the telephone plans it sells to consumers;
however, they have not been performing well on their long-distance plans or roaming
packages as consumers complain about poor reception. Most of our customers that
obtain long-distance plans normally communicate with people within North America.
As you may know about the telecommunications industry, the market is very competitive.
There are high barriers to entry as you need to make substantial investments in capital
assets in order to be a successful company. Many of the more established telecom
providers have their own telephone towers across the world, which allows them to obtain
higher quality cell-phone reception, resulting in consumers being able to communicate
better with others anywhere they go. Cell-phone providers that do not have the adequate
amount of capital to fund substantial investments usually form agreements with the bigger
players in the industry so that they can share signals for their customers. Fortunately,
TTI was in a great position to start as the founders of the Company had substantial capital
to invest in telephone towers in Canada so that they can provide better services to its
customers at a reasonable price.
Aside from providing telecommunications services, TTI also operates the following
business lines:
- Manufacturing and selling semi-conductor chips (the “Semi-conductor division” or
the “SC division”)
- Conducting online and telephone surveys on behalf of research companies (the
“Survey division”).
The SC division operates out of one factory in Ottawa, Canada. We create semi-
conductors, which are parts that are used in most electronic gadgets we use in our daily
lives, including phones, laptops, cars, etc. As you know, there was a world-wide shortage
in semi-conductor chips recently due to a stoppage in production in 2020. We have
resumed production in early 2021 and have continued to be successful in producing semi-
conductors. In fact, we are one of the top 5 semi-conductor producers in Canada. We
have never been so proud.
We also started a survey division in 2021. This division was opened for purposes of
obtaining market data on behalf of research companies. Many market research
companies would reach out to us to help with getting a wider reach on conducting surveys
with people over the phone (or online). We offer to collect the data and either offer to just
remit the data back to the market research company or collect the data and perform some
