Management Accounting Case Book

Pikesville Lightning: Evaluating Strategic Business Expansion Opportunities

Thomas G. Canace, Wake Forest University; Paul E. Juras, Babson College

 

GREG STORM, OWNER OF PIKESVILLE LIGHTNING, IS STRIVING TO make his organization a market leader by finding unique ways to grow the business. He views his accountants as consultants who not only have the technical skills to provide financial and analytical information, but who also have the strategic thinking to provide valuable input to him and the business leaders to help improve the profitability and expansion potential of the business. This case asks the student to play the role of a member of the accounting team and perform some financial and strategic analysis of operating results. The student is also asked to view the role of accountant as that of a strategic business partner by making a specific strategic recommendation to improve the operating results of the organization.

This case is intended for use in upper-level undergraduate or introductory-level graduate management accounting courses. The assignments could be modified for use in an introductory undergraduate managerial accounting course, and suggested modifications for such use are presented within the teaching note.

Keywords: cost behavior, budgeted income statement, and strategic analysis.

Pikesville Lightning: Evaluating Strategic Business Expansion Opportunities¹

Thomas G. CanaceWake Forest University

Paul E. JurasBabson College

INTRODUCTION

Greg Storm, ...