Case Solution for Sack It & Pack It, Inc.: 12 Combinations of GAAP and How They Differ

Complete Case details are given below :

Case Name :      Sack It & Pack It, Inc.: 12 Combinations of GAAP and How They Differ
Authors :           Mark E. Haskins
Source :             Darden School of Business
Case ID :           UV1774
Discipline :        Accounting
Case Length :    05 pages
Solution Sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
This short but provocative case is a useful vehicle for differentiating the financial statement effects of just a few of the accounting method choices available under U.S. generally accepted accounting principles (GAAP). Designed for MBA students, the case presumes a basic understanding of the inventory cost flow methods of LIFO, FIFO, weighted average, and specific identification. Similarly, students must also have a working knowledge of the basic depreciation calculations for straight line, double-declining balance, and units-of-production. A young entrepreneur undertakes a simple modeling task to explore the differential effects of four different inventory methods in combination with three different depreciation methods. Will there be much difference across the options? He is intrigued by the fact that he has some choices of accounting methods available to him as he gets ready to prepare a set of financial statements for his first year of operation.
 
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