Publications

August 2000 (Revised February 2001)
Background Note

Revenue Recognition

By: Paul M. Healy

This case discusses revenue recognition in straightforward situations and then considers revenue transactions that may be more complex to record. Revenue recognition criteria can be implemented for the following situations: 1) Customers pay prior to delivery; 2)... View Details

Keywords: Business Earnings; Revenue Recognition; Decision Making; Financial Statements

November 1999
Background Note

Recognizing Revenues and Expenses: Realized and Earned

By: Robert S. Kaplan

Describes a key concept in financial accounting: choosing an appropriate revenue recognition point. The accrual process requires revenue recognition and expense matching for reporting on the value creation process of companies. Describes the two key criteria for... View Details

Keywords: Accounting Audits; Accrual Accounting; Cost Accounting; Budgets and Budgeting; Revenue; Profit; Cost Management; Value Creation; Competitive Strategy; Financial Statements; Accounting Industry

January 1996
Case

Palm Computing, Inc. (A)

By: Myra M. Hart

Discusses patents, licenses, and deal making in a start-up venture. The entrepreneur, Jeff Hawkins, holds a patent on Palm Print, a pattern recognition algorithm. After licensing Palm Print to his employer, he led three years of development of commercial products for... View Details

Keywords: Intellectual Property; Patents; Agreements and Arrangements; Negotiation Deal; Business Startups; Management Teams

September 1995 (Revised June 2002)
Case

Intel Pentium Chip Controversy (A), The

By: V.G. Narayanan and James D Evans

Following Intel Inc.'s decision to replace flawed Pentium chips, the company faces revenue recognition choices. Events leading up to IBM's decision to halt shipment of computers that have Intel's microprocessor inside and Intel's decision to replace all the flawed... View Details

Keywords: Business or Company Management; Decision Choices and Conditions; Revenue Recognition; Computer Industry

March 1990 (Revised October 1999)
Case

Mary Kay Cosmetics: Sales Force Incentives (A)

By: Robert L. Simons and Hilary Weston

Describes the incentive system by which Mary Kay Cosmetics motivates the sales force of 200,000 independent agents who comprise the firm's only distribution channel. Illustrates the powerful effect on sales-force behavior that results when creative types of employee... View Details

Keywords: Motivation and Incentives; Cost Management; Salesforce Management; Distribution Channels; Beauty and Cosmetics Industry; United States

September 1987 (Revised December 1996)
Case

Patten Corp.

By: Krishna G. Palepu

Forbes Magazine criticized the revenue recognition policy of Patten Corp. As a result, the company's stock price dropped by a significant amount. The students are asked to discuss if the criticism by Forbes is justified, and if not, what the company should do. View Details

Keywords: Fair Value Accounting; Financial Statements; Budgets and Budgeting; Problems and Challenges; Financial Condition; Spending; Revenue; Planning; Quality; Stocks; Journalism and News Industry