Better Buy, Inc. Harvard Case Solution & Analysis

This case pertains to one of the very important issues in financial accounting and reporting: revenue recognition. It's meant to be utilized in a mandatory MBA financial accounting class or in an MBA elective course in Analysis and Financial Reporting. The company is a little unique, yet, in that it not only sells major brand TVs, but also TVs under its own brand that carry a one-year warranty for which the retailer-not the producer-is responsible.

The company also provides an additional two-year warranty on its TVs that also is the exclusive duty of the retailer. The case asks students to address numerous revenue recognition positions together with the related expenses. These scenarios include a merchandise deal where the sales price also carries a guarantee provision, a "bundle" of a merchandise deal and an extended warranty sale, and a bundle of a merchandise deal and an extended warranty deal where the business has an arrangement to outsource the servicing of its comprehensive warranty service.

PUBLICATION DATE: October 26, 2011 PRODUCT #: UV5247-PDF-ENG

This is just an excerpt. This case is about FINANCE & ACCOUNTING

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