Instructional Case: J & S Bicycle Shop

Abstract

This case is designed to develop and assess critical thinking and decision making skills in the presence of conflicting goals. Strategic/critical thinking and decision modeling are identified in the AICPA’s Core Competency Framework. The case setting is a choice among alternative inventory methods for a small business that is seeking a loan to finance expansion. Students are instructed to justify their choice of inventory method based upon information found in a list of documents. These documents contain both relevant and irrelevant information. Although the inventory calculations are simple, neither they nor the method chosen are the focus of the case. Students need to evaluate the evidence in the documents, and no single recommendation is uniquely correct. Students’ written responses are evaluated on how well the recommendations are developed and supported by the evidence.