Water World Instructional Case: Integrating Financial and Managerial Accounting with Strategic Planning

By Montondon, Lucille M.; Butler, Janet B. | Journal of the International Academy for Case Studies, March 1, 2011 | Go to article overview

Water World Instructional Case: Integrating Financial and Managerial Accounting with Strategic Planning


Montondon, Lucille M., Butler, Janet B., Journal of the International Academy for Case Studies


CASE DESCRIPTION

The primary subject matter of this case concerns integration of strategic planning with financial and managerial accounting. Secondary issues include financial accounting journal entries, relevant costs in decision making, budgeting, production schedules, and the accounting cycle. The case has a difficulty level of two, appropriate for sophomore level and five, appropriate for first year graduate level. The case is modular in nature, and is designed to be taught in 1-5 class hours. The number of hours of outside Preparation will depend on the portions of the case selected for use in the classroom, but should not exceed 10 hours.

CASE SYNOPSIS

Much has been published about integration of accounting content and breaking down of silos created within colleges of business. Introductory accounting courses generally are still divided between managerial and financial accounting or, if there is only one course, the highlights of each are presented separately. Further, business strategy is often considered only as part of a capstone class, and the use of accounting information to support strategic decision making is often overlooked.

The purpose of this case is to provide related financial and managerial accounting projects which culminate in a strategic plan. The projects are simplified but provide a discernable thread from raw materials and direct labor to plans to expand the firm. These projects are suitable for a blended financial and managerial introductory course for undergraduates or for MBA students and have been used effectively in an online teaching environment. The modular nature of the projects means that instructors can easily customize case materials.

The Case Description and Case Synopsis should be removed before assigning this case to a student or a student group. This material could prejudice the minds of students.

Student Objectives

This case is designed to help you understand and apply financial and managerial accounting concepts, and to see how the accounting system provides information that can help in financial reporting as well as managerial decision making. To accomplish this, you will be using information from Water World, Inc., a fictitious company operating a water park facility in Texas.

There are five projects in this case. The first three projects focus on managerial accounting concepts, while the fourth is oriented toward financial accounting. You will use both financial and managerial information to complete project five. To complete project one, you will prepare a production schedule and a cash budget. In project two, you will identify and focus on relevant costs for decision making and will use these costs to formulate recommendations related to production of plush toy animals. To complete projects 3 and 4, record basic entries and, in project 4 complete the accounting cycle. In project 5, you will use the accounting information you have generated to make recommendations for increased profits.

OVERVIEW

Water World, Inc. owns and operates a 75 acre water park in Sanderling, Texas. Sanderling is located in northwest Texas, a part of the state known for its hot and dry summertime weather. Because of the heat, the park's cooling waterslides and rides are very popular among residents of the region.

The company's mission goes beyond entertainment, however. In addition to entertaining park customers with water rides and swimming pools, the company educates customers about aquatic mammals through shows and exhibits. The most popular of the educational shows focuses on sea otters. In the show, otters show off a variety of tricks while a narrator describes the otters' habitats and characteristics. The otter exhibits and shows have proven to be so popular that the company has adopted the sea otter as the company mascot, and Water World sells otter toys in the water park's gift shop and to local retailers. To control costs, Water World's manufactures the most popular otter toy, a plush otter, through its wholly-owned subsidiary named Otter Land.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Water World Instructional Case: Integrating Financial and Managerial Accounting with Strategic Planning
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.