Fizzy Water, Inc.: Strategic Planning and Cost Accounting Case

Authors
Nancy Stempin, Connie O’Brien
Region
North America
Topic
Accounting & Finance
Length
8 pages
Keywords
performance improvement
Profitability
product expansion
strategic plans
Student Price
$4.00
Target Audience
Graduate Students
Undergraduate Students

This case asks students to evaluate the operational challenges of Fizzy Water, a beverage company, and find ways to improve profitability and market share through the lens of an outside consultant. Tim, the outside consultant, was hired to analyze Fizzy Water’s performance and make recommendations that will improve profitability using various methods such as financial restructuring, expanding the number and type of products offered, and adding additional markets where products are sold. In this case, students will compare actual performance with budget projections, develop pro forma financial statements, analyze profitability, and design strategic plans to improve performance. Through this case, students will expand their understanding of managerial accounting concepts related to financial analysis, costing, and budgeting. This case is appropriate for undergraduate and graduate cost accounting, advanced managerial accounting, or strategic planning courses.

Learning Outcomes

After completing this case, students should be able to: 

1. Explain how analysis tools are used to analyze financial statements. 

2. Demonstrate how cost accounting concepts relate to variances, cost volume-profit, and budgeting. 

3. Demonstrate how product mix and market growth affect financial performance

4. Analyze financial statement information to create forecasts and recommendations.