Instructor’s Manual m
Management Control m
Systems m
Third Edition m
Kenneth A. Merchant m m
Wim A. Van der Stede
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For further instructor material
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please visit:
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www.pearsoned.co.uk/merchant
ISBN : 978-0-273-73762-9
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© Pearson Education Limited 2012
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Lecturers adopting the main text are permitted to download the manual as required.
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,Pearson Education Limitedm m
Edinburgh Gate m
Harlow
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Essex CM20 2JE m m
England
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and Associated Companies around the world
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Visit us on the World Wide Web at:
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www.pearson.com/uk
This edition published 2012
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© Pearson Education Limited 2012
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The rights of Merchant and Van der Stede to be identified as the authors of this work have
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been asserted by them in accordance with the Copyright, Designs and Patents Act 1988.
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All rights reserved. No part of this publication may be reproduced, stored in a retrieval
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system, or transmitted in any form or by any means, electronic, mechanical, photocopying,
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recording or otherwise, without either the prior written permission of the publisher or a
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licence permitting restricted copying in the United Kingdom issued by the Copyright
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Licensing Agency Ltd, Saffron House, 6-10 Kirby Street, London EC1N 8TS.
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Pearson Education is not responsible for the content of third-party internet sites.
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m ISBN: 978-0-273-73762-9
m
British Library Cataloguing-in-Publication Data
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A catalogue record for this book is available from the British Library
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Library of Congress Cataloguing-in-Publication Data
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A catalog record for this book is available from the Library of
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Congress 10 9 8 7 6 5 4 3 2 1
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Typeset in 11/12 pt Times New Roman by 31
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, Contents
Chapters Pages
I Introduction
1. Introduction 6
2. Model Syllabi m 9
3. Case Matrix m 70
4. The Case Method of Instruction: Suggestions for Students
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II Teaching Notes for Cases
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1. Leo’s Four-Plex Theater
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2. Wong’s Pharmacy m 83
3. Private Fitness, Inc.
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4. Atlanta Home Loan m m 86
5. Armco, Inc.: Midwestern Steel Division
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6. Loctite Company De Mexico, S.A. de C. V.
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7. Puente Hills Toyota m m 101
8. Houston Fearless 76, Inc. m m m 106
Includes (1) Teaching Note Addendum: Student Exam Assignment
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mand Report; (2) the Houston Fearless 76, Inc. (A): Aftermath
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mcase; and m
(3) the Houston Fearless 76, Inc. (B) case.
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9. The Platinum Pointe Land Deal
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10. Axeon N.V. m 130
11. Alcon laboratories, Inc.
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12. Controls at the Bellagio Casino Resort
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13. The Lincoln Electric Company
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14. PCL: A Breakdown in the Enforcement of Management Control
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15. Philip Anderson
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16. Sunshine Fashion: Fraud, Theft and Misbehavior Among Employees
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17. Fit Food, Inc.
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18. Diagnostic Products Corporation m m 168
19. Game Shop, Inc. m m 174
20. Family Care Specialists Medical Group, Inc.
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21. AirTex Aviation m 188
22. Kranworth Chair Corporation m m 195
23. Toyota Motor Sales m m 203
24. Zumwald, AG (with Erratum on page 208)
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25. Global Investors, Inc.
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26. Citibank Indonesia m 219
27. HCC Industries
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28. Patagonia, Inc. m 232
29. VisuSon, Inc.: Business Stress Testing
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Two VisuSon, Inc. databases are available online on the publisher’s
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mwebsite – one for instructors, and one for students.
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30. Harwood Medical Instruments PLC m m m 244
31. Superconductor Technologies, Inc. m m 248
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2012
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Merchant m& mVan mder mStede, mManagement mControl mSystems, m3 edition, mInstructor’s
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Manual
32. Tsinghua Tongfang Co. Ltd. m m m 256
33. Raven Capital, LLC
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34. Behavioral Implications of Airline Depreciation Accounting
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Policy Choices
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35. Las Ferreterías de México, S.A. de C.V.
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36. Industrial Electronics, Inc.
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37. Haengbok Bancorp m 286
38. Berkshire Industries PLC m m 290
39. Catalytic Solutions, Inc.m m 299
40. First Commonwealth Financial Corporation
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41. Statoil 315
42. Olympic Car Wash m m 324
43. Southern California Edison
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44. Beifang Chuang Ye Vehicle Group
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45. Hoffman Discount Drugs, Inc.
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46. Formosa Plastics Group m m 342
47. Bank of the Desert
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The teaching notes for Bank of the Desert (A) and (B) are combined.
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mIncludes Bank of the Desert: Appendix. The Bank of the Desert
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mdatabase and a set of teaching slides are available online on the
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mpublisher’s website. m
48. Vector Aeromotive Corporation
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49. Golden Parachutes?
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50. Pacific Sunwear of California, Inc.
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51. Entropic Communications, Inc.
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52. Financial Reporting Problems at Molex, Inc.
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53. Don Russell: Experiences of a Controller/CFO
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Includes the Don Russell (A) case.
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54. Desktop Solutions, Inc. (A): Audit of the St. Louis Branch
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(B): Audit of Operations Group Systems m m m m m 400
55. Landale PLC m 405
56. Two Budget Targets
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57. Conservative Accounting in the General Products Division
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58. Education Food Services at Central Maine State University
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59. The Sales Acceleration Program
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60. Expiring Software License
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61. Lernout & Hauspie Speech Products
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62. ConAgra Grocery Products Company
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63. Lincoln Electric: Venturing Abroad
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64. TECO Electric & Machinery Co. Ltd.
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65. Kooistra Autogroep m 455
66. City of Yorba Linda, California
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67. Waikerie Co-Operative Producers Ltd.
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68. Boston Lyric Opera
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69. University of Southern California: Responsibility
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Center Management System
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2012
