ISBN : 978-0-273-73762-9

Instructor’s Manual Management Control Systems Third Edition Kenneth A. Merchant Wim A. Van der Stede For further instructor material

please visit:

www.pearsoned.co.uk/merchant

ISBN : 978-0-273-73762-9

© Pearson Education Limited 2012 Lecturers adopting the main text are permitted to download the manual as required.Management Control Systems 3rd Edition Merchant Solutions Manual Visit TestBankDeal.com to get complete for all chapters

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www.pearson.com/uk This edition published 2012 © Pearson Education Limited 2012 The rights of Merchant and Van der Stede to be identified as the authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988.All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6-10 Kirby Street, London EC1N 8TS.Pearson Education is not responsible for the content of third-party internet sites.

ISBN: 978-0-273-73762-9

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10 9 8 7 6 5 4 3 2 1

Typeset in 11/12 pt Times New oman by 31

3 © Pearson Education Limited 2012 Contents Chapters Pages I Introduction

• Introduction6

2 . Model Syllabi9 3 . Case Matrix70

4. The Case Method of Instruction: Suggestions

for Students75 II Teaching Notes for Cases

• Leo’s Four-Plex Theater81

• Wong’s Pharmacy83

• Private Fitness, Inc.84

• Atlanta Home Loan86

5. Armco, Inc.: Midwestern Steel Division91

• Loctite Company De Mexico, S.A. de C. V.97

• Puente Hills Toyota10

1

• Houston Fearless 76, Inc.10

6

Includes (1) Teaching Note Addendum: Student Exam Assignment

and Report; (2) the Houston Fearless 76, In

c. (A): Aftermath case; and

(3) the Houston Fearless 76, Inc. (B) case.

• The Platinum Pointe Land Deal12

5

• Axeon N.V.13

• Alcon laboratories, Inc.13

9

• Controls at the Bellagio Casino Resort14

3

• The Lincoln Electric Company14

9

14. PCL: A Breakdown in the Enforcement of Management Control15

4

• Philip Anderson15

5

16. Sunshine Fashion: Fraud, Theft and

Misbehavior Among Employees 161

• Fit Food, Inc.16

2

• Diagnostic Products Corporation16

8

• Game Shop, Inc.17

4

• Family Care Specialists Medical Group, Inc.18

2

• AirTex Aviation18

8

• Kranworth Chair Corporation19

5

• Toyota Motor Sales20

3

• Zumwald, AG (with Erratum on page 208)20

9

• Global Investors, Inc.21

3

• Citibank Indonesia21

9

• HCC Industries22

6

• Patagonia, Inc.23

2

29. VisuSon, Inc.: Business Stress Testing23

8 Two VisuSon, Inc. databases are available online on the publisher’s website – one for instructors, and one for students.

• Harwood Medical Instruments PLC24

4

• Superconductor Technologies, Inc.24

8

Merchant & Van der Stede, Management Control Systems, 3 rd edition, Instructor’s Manual 4 © Pearson Education Limited 2012

• Tsinghua Tongfang Co. Ltd.256
• Raven Capital, LLC26

2

• Behavioral Implications of Airline Depreciation

Accounting Policy Choices273

• Las Ferreterías de México, S.A. de C.V.27

7

• Industrial Electronics, Inc.28

2

• Haengbok Bancorp28

6

• Berkshire Industries PLC29

• Catalytic Solutions, Inc.29

9

• First Commonwealth Financial Corporation30

7

• Statoil315
• Olympic Car Wash32

4

• Southern California Edison32

7

• Beifang Chuang Ye Vehicle Group33

5

• Hoffman Discount Drugs, Inc.33

8

• Formosa Plastics Group34

2

• Bank of the Desert34

8 The teaching notes for Bank of the Desert (A) and (B) are combined.

Includes Bank of the Desert: Appendix. Th

e Bank of the Desert database and a set of teaching slides are available online on the publisher’s website.

• Vector Aeromotive Corporation36

1

• Golden Parachutes?36

7

• Pacific Sunwear of California, Inc.371
• Entropic Communications, Inc.37

6

• Financial Reporting Problems at Molex, Inc.382

53. Don Russell: Experiences of a Controller/CFO

In cludes the Don Russell (A) case.390

54. Desktop Solutions, Inc. (A): Au

dit of the St. Louis Branch

(B): Audit of Operations Group Systems 400

• Landale PLC40

5

• Two Budget Targets40

8

• Conservative Accounting in th

e General Products Division411

• Education Food Services at Central Maine

State University416

• The Sales Acceleration Program42

• Expiring Software License42

4

• Lernout & Hauspie Speech Products42

7

• ConAgra Grocery Products Company43

4

63. Lincoln Electric: Venturing Abroad43

9

• TECO Electric & Machinery Co. Ltd.45

1

• Kooistra Autogroep45

5

• City of Yorba Linda, California46

4

• Waikerie Co-Operative Producers Ltd.46

9

• Boston Lyric Opera47

3

69. University of Southern California:

Responsibility Center Management System492