Instructor’s Manual g
Management Control Syste g g
ms
Performance Measurement, Evaluati g g
on, and Incentives g g
Fourth edition g
Kenneth A. Merchant g g g
Wim A. Van der Stede
g g g g
Forgfurtherginstructorgmaterialgpleas
egvisit:
www.pearsoned.co.uk/merchant
ISBN:g 978-1-292-11056-1
g Pearsong Educationg Limitedg 2018
Lecturersg adoptingg theg maing textg areg permittedg tog downloadg andg photocopyg theg manualg asg
required.
,PEARSONg EDUCATIONg LIMITED
KAOgTw
ogKAOgP
ark
HarlowgCM17g9NAgUnit
edgKingdom
Tel:g+44g(0)1279g623623
Web:gwww.pearson.com/uk
Secondgeditiongpublishedg2007g
Thirdgeditiongpublishedg2012gT
hisgeditiongpublishedg2018
©g Pearsong Educationg Limitedg 2018
ThegrightsgofgKennethgA.gMerchantgandgWimgA.gVangdergStedegtogbegidentifiedgasgauthorsgof
gthisgworkghavegbeengassertedgbygthemgingaccordancegwithgthegCopyright,gDesignsgandgPate
ntsgActg1988.
ISBNg 978-1-292-11056-1
Allgrightsgreserved.gPermissiongisgherebyggivengforgthegmaterialgingthisgpublicationgtogbegrep
roducedgforgOHPgtransparenciesgandgstudentghandouts,gwithoutgexpressgpermissiongofgthegPu
blishers,gforgeducationalgpurposesgonly.gIngallgothergcases,gnogpartgofgthisgpublicationgmaygb
egreproduced,gstoredgingagretrievalgsystem,gorgtransmittedginganygformgorgbyganygmeans,gelect
ronic,gmechanical,gphotocopying,grecording,gorgotherwisegwithoutgeithergthegpriorgwrittengper
missiongofgthegPublishersgorgaglicencegpermittinggrestrictedgcopyinggingthegUnitedgKingdomg
issuedgbygthegCopyrightgLicensinggAgencygLtd,gBarnard’sgInn,g86gFettergLane,gLondongEC4
Ag1EN.gThisgbookgmaygnotgbeglent,gresold,ghiredgoutgorgotherwisegdisposedgofgbygwaygofgtra
deginganygformgofgbindinggorgcovergothergthangthatgingwhichgitgisgpublished,gwithoutgthegprio
rgconsentgofgthegPublishers.
PearsongEducationgisgnotgresponsiblegforgthegcontentgofgthird-partyginternetgsites.
2
©gPearsongEducationgLimitedg201
8
, Contents
I. Introduction
1. Introduction 8
2. Modelg Syllabi 11
3. Caseg Matrix 76
4. Theg Caseg Methodg ofg Instruction:g Suggestionsg forg Students 80
II. Teachingg Notesg forg Cases
Chapterg1gCases
1. Leo’sg Four-Plexg Theater 86
2. Wong’sg Pharmacy 88
3. Privateg Fitness,g Inc. 89
4. Atlantag Homeg Loan 91
Chapterg2gCases
5. Officeg Solutions,g Inc.§ 96
6. PuentegHillsgToyota 103
7. Kooistrag Autogroep 108
8. HoustongFearlessg76,gInc. 117
Includesg g (1)g g Teaching Noteg g Addendum:g g Studentg g Exam
AssignmentgandgReport;g(2)gthegHoustongFearlessg76,gInc.g(A):gAf
termathgcase;gandg(3)gthegHoustongFearlessg76,gInc.g(B)gcase.
Chapterg3gCases
9. Witskyg andg Associates,g Inc.§ 136
10. Theg Platinumg Pointeg Landg Deal 139
11. EyeOng Pharmaceuticals,g Inc.§ 144
12. Axeong N.V.* 149
Chapterg4gCases
13. Controlsg atg theg Bellagiog Casinog Resort 159
14. PCL:g Ag Breakdowng ing theg Enforcementg ofg Managementg Control 165
Chapterg5gCases
15. Philipg Anderson 169
16. Sunshineg Fashion:g Fraud,g Theft,g andg Misbehaviorg amongg Employees 175
3
©gPearsongEducationgLimitedg201
8
, 17. Betterg Beauty,g Inc.§ 181
18. Fitg Food,g Inc. 186
19. Atlantisg Chemicalg Industries§ 192
Chapterg6gCases
20. Diagnosticg Productsg Corporation 195
21. Gameg Shop,g Inc. 201
22. Familyg Careg Specialistsg Medicalg Group,g Inc. 209
Chapterg7gCases
23. Kranworthg Chairg Corporation 215
24. Zumwaldg AG* 223
25. Globalg Investors,g Inc. 227
Chapterg8gCases
26. Royalg Wessaneng NV§ 233
27. Theg Stimsong Company§ 246
28. Multipleg Versionsg ofg theg Plan§ 251
29. Vitesseg Semiconductorg Corporation 257
Ag spreadsheetg containingg theg IRRg datag andg calculationsg isgava
ilablegonlinegongthegpublisher’sgwebsite.
30. VisuSon,g Inc.:g Businessg Stressg Testing 266
Twog VisuSon,g Inc.g databasesg areg availableg onlineg ong thegp
ublisher’sgwebsite—onegforginstructorsgandgonegforgstudents.
Chapterg9gCases
31. Harwoodg Medicalg Instrumentsg PLC 272
32. Superconductorg Technologies,g Inc. 276
33. Raveng Capital,g LLC 284
Chapterg10gCases
34. Behavioralg Implicationsg ofg Airlineg Depreciationg Accounting
Policyg Choices* 296
35. Lasg Ferreteríasg deg México,g S.A.g deg C.V.* 300
36. Industrialg Electronics,g Inc.* 305
37. Haengbokg Bancorp* 309
38. Corbridgeg Industries,g Inc.§ 313
39. Kingg Engineeringg Group,g Inc.§ 319
40. Berkshireg Industriesg PLC 324
4
©gPearsongEducationgLimitedg201
8
Management Control Syste g g
ms
Performance Measurement, Evaluati g g
on, and Incentives g g
Fourth edition g
Kenneth A. Merchant g g g
Wim A. Van der Stede
g g g g
Forgfurtherginstructorgmaterialgpleas
egvisit:
www.pearsoned.co.uk/merchant
ISBN:g 978-1-292-11056-1
g Pearsong Educationg Limitedg 2018
Lecturersg adoptingg theg maing textg areg permittedg tog downloadg andg photocopyg theg manualg asg
required.
,PEARSONg EDUCATIONg LIMITED
KAOgTw
ogKAOgP
ark
HarlowgCM17g9NAgUnit
edgKingdom
Tel:g+44g(0)1279g623623
Web:gwww.pearson.com/uk
Secondgeditiongpublishedg2007g
Thirdgeditiongpublishedg2012gT
hisgeditiongpublishedg2018
©g Pearsong Educationg Limitedg 2018
ThegrightsgofgKennethgA.gMerchantgandgWimgA.gVangdergStedegtogbegidentifiedgasgauthorsgof
gthisgworkghavegbeengassertedgbygthemgingaccordancegwithgthegCopyright,gDesignsgandgPate
ntsgActg1988.
ISBNg 978-1-292-11056-1
Allgrightsgreserved.gPermissiongisgherebyggivengforgthegmaterialgingthisgpublicationgtogbegrep
roducedgforgOHPgtransparenciesgandgstudentghandouts,gwithoutgexpressgpermissiongofgthegPu
blishers,gforgeducationalgpurposesgonly.gIngallgothergcases,gnogpartgofgthisgpublicationgmaygb
egreproduced,gstoredgingagretrievalgsystem,gorgtransmittedginganygformgorgbyganygmeans,gelect
ronic,gmechanical,gphotocopying,grecording,gorgotherwisegwithoutgeithergthegpriorgwrittengper
missiongofgthegPublishersgorgaglicencegpermittinggrestrictedgcopyinggingthegUnitedgKingdomg
issuedgbygthegCopyrightgLicensinggAgencygLtd,gBarnard’sgInn,g86gFettergLane,gLondongEC4
Ag1EN.gThisgbookgmaygnotgbeglent,gresold,ghiredgoutgorgotherwisegdisposedgofgbygwaygofgtra
deginganygformgofgbindinggorgcovergothergthangthatgingwhichgitgisgpublished,gwithoutgthegprio
rgconsentgofgthegPublishers.
PearsongEducationgisgnotgresponsiblegforgthegcontentgofgthird-partyginternetgsites.
2
©gPearsongEducationgLimitedg201
8
, Contents
I. Introduction
1. Introduction 8
2. Modelg Syllabi 11
3. Caseg Matrix 76
4. Theg Caseg Methodg ofg Instruction:g Suggestionsg forg Students 80
II. Teachingg Notesg forg Cases
Chapterg1gCases
1. Leo’sg Four-Plexg Theater 86
2. Wong’sg Pharmacy 88
3. Privateg Fitness,g Inc. 89
4. Atlantag Homeg Loan 91
Chapterg2gCases
5. Officeg Solutions,g Inc.§ 96
6. PuentegHillsgToyota 103
7. Kooistrag Autogroep 108
8. HoustongFearlessg76,gInc. 117
Includesg g (1)g g Teaching Noteg g Addendum:g g Studentg g Exam
AssignmentgandgReport;g(2)gthegHoustongFearlessg76,gInc.g(A):gAf
termathgcase;gandg(3)gthegHoustongFearlessg76,gInc.g(B)gcase.
Chapterg3gCases
9. Witskyg andg Associates,g Inc.§ 136
10. Theg Platinumg Pointeg Landg Deal 139
11. EyeOng Pharmaceuticals,g Inc.§ 144
12. Axeong N.V.* 149
Chapterg4gCases
13. Controlsg atg theg Bellagiog Casinog Resort 159
14. PCL:g Ag Breakdowng ing theg Enforcementg ofg Managementg Control 165
Chapterg5gCases
15. Philipg Anderson 169
16. Sunshineg Fashion:g Fraud,g Theft,g andg Misbehaviorg amongg Employees 175
3
©gPearsongEducationgLimitedg201
8
, 17. Betterg Beauty,g Inc.§ 181
18. Fitg Food,g Inc. 186
19. Atlantisg Chemicalg Industries§ 192
Chapterg6gCases
20. Diagnosticg Productsg Corporation 195
21. Gameg Shop,g Inc. 201
22. Familyg Careg Specialistsg Medicalg Group,g Inc. 209
Chapterg7gCases
23. Kranworthg Chairg Corporation 215
24. Zumwaldg AG* 223
25. Globalg Investors,g Inc. 227
Chapterg8gCases
26. Royalg Wessaneng NV§ 233
27. Theg Stimsong Company§ 246
28. Multipleg Versionsg ofg theg Plan§ 251
29. Vitesseg Semiconductorg Corporation 257
Ag spreadsheetg containingg theg IRRg datag andg calculationsg isgava
ilablegonlinegongthegpublisher’sgwebsite.
30. VisuSon,g Inc.:g Businessg Stressg Testing 266
Twog VisuSon,g Inc.g databasesg areg availableg onlineg ong thegp
ublisher’sgwebsite—onegforginstructorsgandgonegforgstudents.
Chapterg9gCases
31. Harwoodg Medicalg Instrumentsg PLC 272
32. Superconductorg Technologies,g Inc. 276
33. Raveng Capital,g LLC 284
Chapterg10gCases
34. Behavioralg Implicationsg ofg Airlineg Depreciationg Accounting
Policyg Choices* 296
35. Lasg Ferreteríasg deg México,g S.A.g deg C.V.* 300
36. Industrialg Electronics,g Inc.* 305
37. Haengbokg Bancorp* 309
38. Corbridgeg Industries,g Inc.§ 313
39. Kingg Engineeringg Group,g Inc.§ 319
40. Berkshireg Industriesg PLC 324
4
©gPearsongEducationgLimitedg201
8
