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Issue 5(1), October 2010 -- Paper Abstracts
Girard  (p. 9-22)
Cooper (p. 23-32)
Kunz-Osborne (p. 33-41)
Coulmas-Law (p.42-46)
Stasio (p. 47-56)
Albert-Valette-Florence (p.57-63)
Zhang-Rauch (p. 64-70)
Alam-Yasin (p. 71-78)
Mattare-Monahan-Shah (p. 79-94)
Nonis-Hudson-Hunt (p. 95-106)



JOURNAL OF ACCOUNTING AND FINANCE

A Case Method Approach of Teaching How Cost-Volume-Profit Analysis is
Connected to the Flexible Budgeting Process and Variance Analysis


Author(s): Susan Machuga, Carl Smith

Citation: Susan Machuga, Carl Smith, (2013) "A Case Method Approach of Teaching How Cost-Volume-Profit Analysis is Connected to the Flexible Budgeting Process and Variance Analysis," Journal of Accounting and Finance, Vol. 13, Iss. 6, pp. 178 - 192

Article Type: Research paper

Publisher: North American Business Press

Abstract:

To start a successful business, students need to understand the steps necessary to achieve their desired
profits. While Managerial textbooks teach each step independently, we demonstrate how these steps are
integrated. We present a Multi-Disciplinary Case-Method approach to teaching Cost-Volume-Profit
(CVP) Analysis. Students use their own assumptions to simulate a real-life business startup analysis to
calculate the number of units necessary to achieve their desired profits. Students are required to build
upon their CVP analyses to develop budgets necessary for planning and control purposes. Finally,
students prepare a Flexible Budget demonstrating the importance of distinguishing between activity and
revenue/spending variances.