Created by QuickNotesPro
Instructor\'s Manual Management Control Systems 3rd Edition By
Kenneth A. Merchant , Wim A. Van der Stede
|All Chapters (1-69) | Updated Version 2024/2025 A+
Chapters Pages
I Introduction
1. Introduction 6
2. Model Syllabi 9
3. Case Matrix 70
4. The Case Method of Instruction: Suggestions for Students 75
II Teaching Notes for Cases
1. Leo’s Four-Plex Theater 81
2. Wong’s Pharmacy 83
3. Private Fitness, Inc. 84
4. Atlanta Home Loan 86
5. Armco, Inc.: Midwestern Steel Division 91
6. Loctite Company De Mexico, S.A. de C. V. 97
7. Puente Hills Toyota 101
8. Houston Fearless 76, Inc. 106
Includes (1) Teaching Note Addendum: Student Exam Assignment and Report; (2) the Houston
Fearless 76, Inc. (A): Aftermath case; and
(3) the Houston Fearless 76, Inc. (B) case.
1
,Created by QuickNotesPro
9. The Platinum Pointe Land Deal 125
10. Axeon N.V. 130
11. Alcon laboratories, Inc. 139
12. Controls at the Bellagio Casino Resort 143
13. The Lincoln Electric Company 149
14. PCL: A Breakdown in the Enforcement of Management Control 154
15. Philip Anderson 155
16. Sunshine Fashion: Fraud, Theft and Misbehavior Among Employees 161
17. Fit Food, Inc. 162
18. Diagnostic Products Corporation 168
19. Game Shop, Inc. 174
20. Family Care Specialists Medical Group, Inc. 182
21. AirTex Aviation 188
22. Kranworth Chair Corporation 195
23. Toyota Motor Sales 203
24. Zumwald, AG (with Erratum on page 208) 209
25. Global Investors, Inc. 213
26. Citibank Indonesia 219
27. HCC Industries 226
28. Patagonia, Inc. 232
29. VisuSon, Inc.: Business Stress Testing 238
Two VisuSon, Inc. databases are available online on the publisher’s website – one for
instructors, and one for students.
2
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30. Harwood Medical Instruments PLC 244
31. Superconductor Technologies, Inc. 248
3
© Pearson Education Limited 2012
Merchant & Van der Stede, Management Control Systems, 3rd edition, Instructor’s Manual
32. Tsinghua Tongfang Co. Ltd. 256
33. Raven Capital, LLC 262
34. Behavioral Implications of Airline Depreciation Accounting
Policy Choices 273
35. Las Ferreterías de México, S.A. de C.V. 277
36. Industrial Electronics, Inc. 282
37. Haengbok Bancorp 286
38. Berkshire Industries PLC 290
39. Catalytic Solutions, Inc. 299
40. First Commonwealth Financial Corporation 307
41. Statoil 315
42. Olympic Car Wash 324
43. Southern California Edison 327
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44. Beifang Chuang Ye Vehicle Group 335
45. Hoffman Discount Drugs, Inc. 338
46. Formosa Plastics Group 342
47. Bank of the Desert 348
The teaching notes for Bank of the Desert (A) and (B) are combined. Includes Bank of the
Desert: Appendix. The Bank of the Desert database and a set of teaching slides are available
online on the publisher’s website.
48. Vector Aeromotive Corporation 361
49. Golden Parachutes? 367
50. Pacific Sunwear of California, Inc. 371
51. Entropic Communications, Inc. 376
52. Financial Reporting Problems at Molex, Inc. 382
53. Don Russell: Experiences of a Controller/CFO
Includes the Don Russell (A) case. 390
54. Desktop Solutions, Inc. (A): Audit of the St. Louis Branch
(B): Audit of Operations Group Systems 400
55. Landale PLC 405
56. Two Budget Targets 408
57. Conservative Accounting in the General Products Division 411
58. Education Food Services at Central Maine State University 416
59. The Sales Acceleration Program 420
60. Expiring Software License 424
61. Lernout & Hauspie Speech Products 427
4
Instructor\'s Manual Management Control Systems 3rd Edition By
Kenneth A. Merchant , Wim A. Van der Stede
|All Chapters (1-69) | Updated Version 2024/2025 A+
Chapters Pages
I Introduction
1. Introduction 6
2. Model Syllabi 9
3. Case Matrix 70
4. The Case Method of Instruction: Suggestions for Students 75
II Teaching Notes for Cases
1. Leo’s Four-Plex Theater 81
2. Wong’s Pharmacy 83
3. Private Fitness, Inc. 84
4. Atlanta Home Loan 86
5. Armco, Inc.: Midwestern Steel Division 91
6. Loctite Company De Mexico, S.A. de C. V. 97
7. Puente Hills Toyota 101
8. Houston Fearless 76, Inc. 106
Includes (1) Teaching Note Addendum: Student Exam Assignment and Report; (2) the Houston
Fearless 76, Inc. (A): Aftermath case; and
(3) the Houston Fearless 76, Inc. (B) case.
1
,Created by QuickNotesPro
9. The Platinum Pointe Land Deal 125
10. Axeon N.V. 130
11. Alcon laboratories, Inc. 139
12. Controls at the Bellagio Casino Resort 143
13. The Lincoln Electric Company 149
14. PCL: A Breakdown in the Enforcement of Management Control 154
15. Philip Anderson 155
16. Sunshine Fashion: Fraud, Theft and Misbehavior Among Employees 161
17. Fit Food, Inc. 162
18. Diagnostic Products Corporation 168
19. Game Shop, Inc. 174
20. Family Care Specialists Medical Group, Inc. 182
21. AirTex Aviation 188
22. Kranworth Chair Corporation 195
23. Toyota Motor Sales 203
24. Zumwald, AG (with Erratum on page 208) 209
25. Global Investors, Inc. 213
26. Citibank Indonesia 219
27. HCC Industries 226
28. Patagonia, Inc. 232
29. VisuSon, Inc.: Business Stress Testing 238
Two VisuSon, Inc. databases are available online on the publisher’s website – one for
instructors, and one for students.
2
,Created by QuickNotesPro
30. Harwood Medical Instruments PLC 244
31. Superconductor Technologies, Inc. 248
3
© Pearson Education Limited 2012
Merchant & Van der Stede, Management Control Systems, 3rd edition, Instructor’s Manual
32. Tsinghua Tongfang Co. Ltd. 256
33. Raven Capital, LLC 262
34. Behavioral Implications of Airline Depreciation Accounting
Policy Choices 273
35. Las Ferreterías de México, S.A. de C.V. 277
36. Industrial Electronics, Inc. 282
37. Haengbok Bancorp 286
38. Berkshire Industries PLC 290
39. Catalytic Solutions, Inc. 299
40. First Commonwealth Financial Corporation 307
41. Statoil 315
42. Olympic Car Wash 324
43. Southern California Edison 327
3
, Created by QuickNotesPro
44. Beifang Chuang Ye Vehicle Group 335
45. Hoffman Discount Drugs, Inc. 338
46. Formosa Plastics Group 342
47. Bank of the Desert 348
The teaching notes for Bank of the Desert (A) and (B) are combined. Includes Bank of the
Desert: Appendix. The Bank of the Desert database and a set of teaching slides are available
online on the publisher’s website.
48. Vector Aeromotive Corporation 361
49. Golden Parachutes? 367
50. Pacific Sunwear of California, Inc. 371
51. Entropic Communications, Inc. 376
52. Financial Reporting Problems at Molex, Inc. 382
53. Don Russell: Experiences of a Controller/CFO
Includes the Don Russell (A) case. 390
54. Desktop Solutions, Inc. (A): Audit of the St. Louis Branch
(B): Audit of Operations Group Systems 400
55. Landale PLC 405
56. Two Budget Targets 408
57. Conservative Accounting in the General Products Division 411
58. Education Food Services at Central Maine State University 416
59. The Sales Acceleration Program 420
60. Expiring Software License 424
61. Lernout & Hauspie Speech Products 427
4
