Introduction
One constant in the teaching of virtually all courses in management control systems (MCSs) is
their heavy use of the case method of instruction. Even instructors who are most comfortable
lecturing and/or who like to describe the management control issues through relatively formal
(for example, agency theory) models find it useful to use cases to illustrate the lecture points or
Our own teaching style involves the use of many cases, with considerable student participation
in the discussions. This type of course makes some students, particularly those who have not
experienced a case course before, quite uncomfortable. We thus sometimes find it necessary to
sell the advantages of the case method. To this end, instructors can use the note called The
Case Method of Instruction: Suggestions for Students which can be handed out either in or
before the first day of class. This note is included in this manual for your consideration and
possible use.
As for course organization, there is no one template approach. Management control is a
complex, multidimensional subject, and courses in MCSs can be organized in many ways. The
outline of the textbook provides one way that we have found useful for organizing the materials.
Even with the same outline, instructors can choose to use quite different sets of cases and
different case orderings. This is because, unlike simple problems, most of the cases included in
the book describe rich real-world examples, and real-world examples usually do not illustrate
just one point.
Results Controls in the Presence of Uncontrollable Factors) because controllability is a critical
issue that must be considered in deciding whether to give the regional general managers profit
responsibility; or in Chapter 16 because it illustrates how external forces, in this case changes in
the competitive environment, affect business strategies and, in turn, MCSs.
To give yet another example, the Catalytic Solutions case, which is included in Chapter 11
(Remedies to the Myopia Problem) to illustrate the use of nonfinancial performance measures,
To help instructors with their case choice decisions, we included in this manual a so-called
Case Matrix showing the multiple links between cases and chapters.
The following pages also show several course organizations we use in various teaching
programs. The first syllabus (Model Syllabus 1) is for an undergraduate half-semester course
taught in a two-classes-per-week format over 7 weeks. The second syllabus (Model Syllabus 2)
shows the contents of a 5-week module focused on management control as part of a senior
undergraduate management accounting course taught in a two-classes-per-week format (through
You will also see that we used some cases out of order; that is, in conjunction with a chapter
reading different from the chapter in which the case is included in the book. That is why we
emphasize that both the inclusion of the cases in the chapters and these guides are merely
illustrative. We encourage instructors to adapt the materials to their own organization and
teaching emphasis. In so doing, we hope that the alternatives illustrated in the case matrix will
prove helpful.
Merchant & Van der Stede, Management Control Systems, 3rd edition, Instructors Manual
8
Kenneth A. Merchant Wim A. Van der Stede
Deloitte & Touche LLP Chair of Accountancy CIMA Professor of Accounting and Financial
Leventhal School of Accounting Management
Marshall School of Business London School of Economics