Sample Cases
The following group of cases were contributed by Dr. Elizabeth Tebeaux, Director of Distance Education and Professor of English at Texas A&M University. Dr. Tebeaux specializes in business and technical writing. The sample cases below are for accounting and engineering, but the principles used can apply to any discipline. Also included at the end is an advanced case study which can be used in many disciplines.
The first four cases were developed to help students studying intermediate accounting learn to explain accounting concepts to non-accountants.The ability to explain these concepts clearly and persuasively to clients is critical to the success of any accountant.Each case emerged from a problem at the end of a chapter in the students’ accounting text.The problems were combined with the needs of human beings in realistic situations that a practicing accounting might confront.
Case 1: The Bill Finch Case
“I developed this case from a discussion with a director of personnel at the Houston, Texas, office of a major US telecommunications company.The case was developed for use with an in-house writing workshop for lower-level managers who were being prepared for promotion to mid-level management positions. Managers in the workshop needed to learn how to write performance reviews, recommendations for promotions, and management reports.The situation in the case was provided by the personnel director, who described the person in the case who needed the transfer.As the person in charge of developing the assignments for the workshop, I synthesized these elements into the narrative that forms the case.The value of this case to the workshop attendants: they will understand the situation described.Thus, helping them develop a recommendation memo for Bill Finch will be easier because they can understand the nuances of the situation.In addition, the human side of the Bill Finch case was easier for them to grasp and then address in the memo.When they first read the case, workshop participants were asked to discuss Bill Finch’s situation.Then, they were asked to draft a recommendation.Students took turns displaying their responses and critiquing the various approaches used.This approach thus merges the first two uses of case situations” (as described in Case Studies on this site.)
Case 1: The Bill Finch Case
Robert Hansen, a friend who is a district-level supervisor in Network Design, has an opening for a second-line engineer. Hansen writes you a note saying that he has heard that Bill Finch, who is currently a customer services supervisor, might be a good person for him to consider. Hansen asks you to write him about your views of Finch. Hansen is a good friend of yours. You know that he has several employees who are not satisfactory, and you do not want to recommend anyone who might not work out. Finch was last evaluated ten months ago. In addition, you reflect that much has happened in the past six to eight months that might not be adequately reflected in Finch’s personnel file. Some of these facts might affect Hansen’s consideration of Finch. As you recall events of the past months, here is what you recall about Finch.
Bill Finch is a first-line foreman who is active in the community. You know about his activities because you both work in the same community improvement group. He is very active in the Lions Club and serves on the YMCA Board of Directors. On the job, his customer report rate has been above average but slightly below the objective. He has met his safety objectives and has good expense control–no problems there.
However, Finch has problems getting along with some of the people he works with. Five months ago he had a yelling match with another foreman. That scenario has been repeated at least four times since then. The month before, he overstepped his bounds, telling another foreman’s employee how to do a job when the regular foreman was available. Yet, Finch has the best crew on attendance: they met their objectives by a substantial margin. In spite of his problems with fellow workers, Finch is definitely a team player. For example, he was a key participant in family safety night last month.
While Finch is a good employee, you are concerned about his problems in getting along with people. About three weeks ago and then again last week, he failed to report to work without giving notice. However, you also know that Finch’s wife Eloise has cancer, and her prognosis is not good. You overheard a good friend of Finch’s comment that Eloise may not make it unless her response to treatment improves.
The problem you face is what to tell Hansen. You think that the job change might help Finch. He certainly has not endeared himself to his current associates because of his unpredictable temper and moodiness. However, you think Hansen needs to know the facts. But after considering the situation, you decide you want Hansen to offer the position to Finch, as he needs the money and the job change. You now write a recommendation.
Used with the author’s permission. From Tebeaux, Elizabeth. “The Shared-Document Collaborative Case Response: Teaching and Research Implications of an In-House Teaching Strategy.” Collaborative Writing in Industry: Investigations in Theory and Practice. Eds. Mary Lay and William Karis. Amityville, NY: Baywood. 1991. 124-45.
Case 2 for Intermediate Accounting: Smith Appliance and Repair
Case 2 began with a problem at the end of a chapter:“Explain the difference between “lower-of-cost-or market method of inventory valuation.” This sounds simple enough, but how does the student adjust the explanation, depending on the educational level, personality, and attitude of the person needing the information?
In this situation, the case gives specific instructions on what to write and what to include in the written documents.In learning to respond to cases, students will benefit from guidance in how to respond to cases.Later, you can let them determine how to respond.
Case 2: Smith Appliance and Repair
One of your clients, Smith Appliance and Repair, is a small-appliance retail sales and repair business.Because numerous and continuous innovations in small-appliance technology have emerged in recent years, these shifts have caused obsolescence in several of Smith’s product lines.In addition, the competitive nature of small-appliance wholesale and retail markets (large discount store, catalogue, and small shops) has caused numerous price-level changes in the wholesale market.These conditions have caused the value of much of Smith’s inventory to fall at near, or below, cost.In your opinion, the client may need to depart from the use of cost-based inventory valuation.
Your firm has been working with Smith for three years.Harry Nelson, the owner, bought Smith eleven years ago from the original owner.In eleven years, Nelson has changed accountants four times.Nelson is difficult, moody, and extremely worried about his business.However, Nelson seems to like you because you anticipate where he may have problems and attempt to keep him informed about his options.
Write Nelson a report and a transmittal letter and discuss the following:
- Explain the conditions under which historical cost may no longer be appropriate for inventory valuation.Relate these conditions to his circumstances.
- Describe, in general terms, the lower-of-cost-or-market method of inventory valuation, including the levels of inventory groupings to which it can be applied.
- Mention some of the arguments that can be made against the lower-of-cost-or-market method of valuing inventory.
One of many problems in dealing with Nelson stems from your uncertainty about how much he really understands about what you tell him. Several weeks ago, you told him at the weekly Rotary Club meeting that he should look at his inventory methods.From his response, you decided that he didn’t understand how inventory valuation could make a difference.
Case 3 for Intermediate Accounting: SmartMart
Accounting students need to know and to be able to explain differences among various types of cost accounting.Thus, the simple exercise–the difference between FIFO and LIFO–can be written to require the student to explain a concept to a person who needs to understand the difference but who does not have an accounting background.
Case 3: SmartMart
Smart Mart company, a household appliances dealer, purchases its inventories (washers, dryers, dishwashers, refrigerators, cooking ranges, and trash compactors) from major suppliers.Smart Mart is one of three appliance dealers in Groveton, a community of 16,000.Smart Marthas consistently stated its inventory at the lower of cost (FIFO) market.
Your accounting firm has done Smart Mart’s books and taxes for the past four years.Hollis Beason, who owns Smart Mart, phones you and says that he wants to use another method of accounting for the cash discounts the company takes when it pays its supplies promptly.He wants to know what is involved in changing inventory methods–from FIFO to LIFO.Write Beason a letter and explain the effects on both the balance sheet and the income statement of using LIFO inventory methods instead of the FIFO method over a substantial time period when purchase prices of household appliances are rising.Explain why these effects take place.
Hollis Beason took over Smart Mart from his uncle, who opened Smart Mart when Hollis was in junior high.Hollis worked for his uncle until his uncle’s death eight years ago.Hollis has continued to run the company just the way his uncle left it, and the company has increased it net profits by 3%-5% per year.Hollis attended TTI and is an expert on appliance repair.However, his knowledge of business is limited. Thus, he is extremely sensitive about not having a college degree.He is easy-going but sensitive to any suggestion that he is “just a good ole boy.”
One of the partners in your firm, Janice Klemm, reminds you that, in working with people like Beason, you should be careful to answer their questions but try (tactfully) to help them learn more about basic business principles they need to know.As Janice reminded you, “this is a small town:our client base expands or shrinks depending on word-of-mouth good will.People like Beason are the backbone of this community. How well we serve them is crucial to our success.”
Write the letter report to Hollis Beason, Box 2635, Groveton, TX 77307.
NOTE: You can also require students to present the same information to an individual with an entirely different profile.
Case 4 for Intermediate Accounting: An Ethical Dilemma
Cases can be particularly useful in helping students understand ethical dilemmas they are likely to face.Students benefit from analyzing and discussing situations in which ethical decisions are often difficult to determine.
Case 4: An Ethical Dilemma
You are a partner in public accounting firm of Giffey; Griffey & Company.One of your larger clients–Zebco, Ltd.–is a company that designs and produces small engines used in lawn mowers, lawn edgers, snowblowers, and similar types of equipment.Last year your client’s research and development division had a major breakthrough in small engine design.During the current year, your client continued its research and development efforts related to the new engine design in the hope of creating an innovative new automobile engine for small recreational vehicles.Even though this type of engine is not part of the normal design and production activities of your Zebco, the owner, Leland Gray,had every intention of producing small RVengines if the small-engine breakthrough could be successfully adapted to the small engine line.
The R&D costs during this year for the RV engine project have been extremely large, almost double all small-engine research and development costs for the same period.Zebco’s management team has made it clear to you that they intend to capitalize the automobile engine research and development costs and then write them off to expense over several years.Zebco’sposition is that this approach will better match the research and development costs against revenues that may be earned from the RV engine project. During discussions with officials at Zebco, you know that your client feels very strongly that to record the RV engine research and development costs as an expense of the current year, which is the company’s usual practice with their small-engine research and development costs, would be entirely unfair because to do so would turn a relatively profitable year into a year in which the company would report its largest loss ever.In your client’s opinion, to report a substantial loss would be totally inconsistent with the fact that the design application to automobile engines would be the greatest positive event in company history.Zebco’s management feels so strongly about their position that they have told you they will engage a different CPA firm as their auditor if you will not agree to the cost capitalization plan.
Zebco’s plan puts you in a difficult position because (1) it is one of your firm’s more important clients, producing audit fees in excess of $250,000 each year, and (2) your understanding is that generally accepted accounting principles require that research and development costs be expensed in the year in which they are incurred.What Zebco wants to do is unacceptable.
Write a letter report to Jarrod M. Bruce, who Vice-President of Operations for Zebco.Explain the issues. Attempt to persuade him to your point of view on this matter–i.e., solve the ethical dilemma and keep Zebco as a customer. Zebco’s address is 2120 Sam Houston, 200, Groveton, TX 77305.
Case 5 for Engineering Students: Bradley and Griffen Prosthetics
Engineers frequently need to justify their work, designs, or solutions to problems to individuals who are non-engineers.To achieve that goal, the engineer must be able to explain technical information clearly to a range of audiences.The following cases require engineering students to do just that–explain engineering concepts to non-engineers.
Case 5: Bradley and Griffen Prosthetics
You are a design engineer with Bradley and Griffin, a company that designs prosthetic equipment.B&G was launched after World War I by Walter Bradley and Richard Griffin, who were classmates at MIT.Following World War I, both men saw the need for prosthetic devices, pooled their resources, and launched their company.Initially (1921-1940), the company developed and sold artificial legs and worked on the design of prosthetic devices that imitated natural movement and allowed amputees to work as normally as possible.Then, with the outbreak of World War II, the company began research on artificial hands.In the 1970’s, B&G invested heavily in artificial joint research and developed and sold artificial knees which were designed in response to this research.Walter Bradley III and Richard Griffin III are bioengineering graduates of MIT and UCLA who see the importance of prosthetic devices for an aging population.
Recently, however, B & G has been interested in developing a total hip replacement package that can be used by older people who have arthritis and by athletes who have suffered irreparable hip injury. The company has done major development research in joint fusion and headless screw, in addition to external fixators for fractures.
As senior design manager for B&G, you have been asked to write a reportthat explains the current materials that can be used in developing a hip replacement. In your report, you will do the following:
- describe the prosthesis
- consider environment
- consider biocompatibility
- describe fatigue
- describe loading
- describe possible problems, such as fracture and corrosion.
Mr. Griffin asks you to write the report, which he will distribute to the Board of Directors of B&G.The board is composed of educated, successful members of the community.Three are doctors–one general practitioner and two orthopedists.Other board members include the owner of a large fitness center, a bank president, the superintendent of the local public school district, attorney; one accountant, and two retired professional athletes, three owners of local businesses.
To design the report, write a memo of transmittal to Walter Bradley and Richard Griffin.The memo will be attached to the report, which will have a cover page.The report itself will begin with the report title, followed by an introduction.Add visual aids–drawings, tables, etc.–but remember that you are writing to non-engineers.
Based on your engineering perspective, your readers will want to know if you think a prosthesis, based on what you have determined, is feasible.
Hint:Be sure to check the World Wide Web under prosthetic devices.To begin, check Alta Vista and Yahoo–health–prosthetic devices and then Google. Be sure to document any sources you use from the web! See the table below for help with how to develop your report.
Possible Report Development Plans
Introduction
Introduction
Specifications
Recommendations
Evaluation Procedures for Each Specification
Specifications
Results of Evaluation
Evaluation Procedures for Each Specification
Conclusion
Results of the Evaluation
Recommended Materials for Club Shafts
Conclusion
Appendices–data
Appendices–data
References
References
Case 6 for Engineering Students: Bradley and Griffin Tractor Trailers
Case 6: Bradley and Griffin Tractor Trailers
You are a design engineer with Bradley and Griffin, a company that designs tractor-trailers, such as 18-wheelers. B&G sells their designs to major trucking companies, such as Ford and Peterbilt. B&G was launched after World War I by Walter Bradley and Richard Griffin, who were classmates at MIT.Following World War I, both men saw that trucking would become a major industry and that truck rigs would need to become stronger but lighter. Thus, since the 1950’s, B&G has focused a substantial portion of their budget for materials research. In the 1980’s, however, with the threat of fuel shortage, the focus on strength with less weight became a major issue.
Recently, however, B&G’s Board of Directors has been keenly interested in this problem.As a result of your research, you are ready to make a recommendation about the available substitute materials for manufacturing the drive shaft for the tractor-trailer.Your task is to prepare a report for distribution to the B&G 12-member Board of Directors, only two of which are engineers. (The remaining 10 represent various types of manufacturing, retailing, and bankingorganizations.) You goal is to explain what new materials are available so that the Board understands your research and recommendations.
In your report, be sure to discuss the following:
- Determine the kind of loads and stresses that a drive shaft must experience.
- Consider appropriate mechanical and/or physical properties that would be required.
- Describe the type of the component would be required to experience.
- Describe the types of mechanical tests that would be required to insure your material performed suitably.
- Describe the possible manufacturing processes.
- Select alternative materials and offer reasons why they would be better or at least equal to the current choice of material used for drift shafts.
- Document the reasons for your selection.
- Make an effort to determine the economics of your selection–whether or not the material you will recommend is cost effective, as compared to the cost-effectiveness of what is now used in drift-shaft construction.
To design the report, write a memo of transmittal to Walter Bradley and Richard Griffin. The memo will be attached to the report, which will have a cover page. The report itself will begin with the report title, followed by an introduction. Add visual aids–drawings, tables, etc.–but remember that you are writing to non-engineers.
Advanced Case Study for Students in Various Disciplines: The Wetlands
Once you become confident in designing case studies, you may wish to build larger ones. The Wetlands Case, located at http://www.rice.edu/wetlands/ was developed by Dr. Linda Driskill at Rice University. The case, which can be used by a range of students from many disciplines, emerged from news stories. Dr. Driskill became familiar with the issues that comprise this case from news stories and contacted individuals mentioned in articles. She actually went to Oregon to collect documents and interview individuals involved in the situation.
The site involves a real-life situation that began in the late1980s in Eugene, Oregon, when wetlands were discovered west of Eugene The EPA threatened to bar all development in 750 acres of the city’s industrial expansion area and to fine companies that had accepted the city’s tax incentives to build in an area that had some boot- sucking mud in winter but dried hard as tile in the summer. International companies, environmentalists, developers, regulators from local and national agencies, as well as state and local governments, were among the stakeholders in this case, which occurred between 1987 and 1998.
Some of the communication assignments in the site include team assignments for oral presentations.
- Team One required Spectra-Physics managers in 1989 to explain their situation to their CEO at a California headquarters. The team could also write a report to the French holding company that had acquired the firm and understood little about US environmental regulation.
- Team Two is from the “wetheads,” a group of planners, financial analysts, and scientists helping to build public consensus about what to do with the wetland. The team explains four scenarios for use of the wetlands to an open meeting that includes developers, land owners, and environmentalists in February, 1990.
- Team Three represents The Metro Partnership and gives a welcoming presentation at the Eugene airport to a site selection team from a French company, Rohr Industries, which was looking for a new site that would be a great financial boost to the city, spring 1990. Just ahead loomed an election in which voters would decide on a proposal to ban all nuclear materials in Eugene; an activist group had found out Rohr made parts for planes that can carry nuclear missiles and may demonstrate at the welcoming party.
- Team Four is responsible for briefing the governor of Oregon just before the opening of the first restored wetland. Senator Hatfield will attend, as will many local and county officials in Spring, 1995. The governor’s predecessor was deeply embarrassed when information about the wetlands became public during his tour of Japan to promote investment in the west Eugene industrial area.
Teams were responsible for preparing their class audiences for the presentation, explaining the way they have planned to use the physical locations as well as other strategic objectives of their presentations. The class saw the case unfold over time as the presentations were given, even though each student was responsible for only a portion of the whole case. Individual assignments ranged from a stakeholder analysis exercise to strategy memos, reports, and overheads for presentations. The benefit of the wetlands site is that as class members complete various assignments, they become aware of the complex implications of their decisions about what write and the importance of the many aspects of any communicative act.
The site includes team assignments and individual assignments. The source materials include newspaper articles, reports, letters, memos, photos, brochures, interviews, maps, and other items.
As Dr. Driskill recalls: “About three years after we put up the site, the City of Eugene began putting up all the subsequent materials relating to the wetlands area. By using the Rice University Wetlands site at http://www.rice.edu/wetlands/ in conjunction with the City of Eugene wetlands site at http://www.eugene-or.gov/portal/server.pt, instructors can mine a rich base of related materials. The Rice University West Eugene Wetlands site can be used in communication across the disciplines courses or courses that involve a wide range of majors, including engineering, biology, ecology, political science, journalism, public relations, management, international business. We invite you to visit our web site and, if you are interested, to allow us to work with you to adapt the site more successfully to your communication course requirements.”
Dr. Driskill is Professor of English and Director of the Cain Project in Engineering and Professional Communications at Rice University.
