Sack it & Pack it, Inc.: 12 Combinations of GAAP and how They Differ

5 Pages Posted: 5 Apr 2010

See all articles by Mark E. Haskins

Mark E. Haskins

University of Virginia - Darden School of Business


Do not edit content of this case. It must match the Cambridge book version (2009) exactly. Formatting may be updated as necessary. This short but provocative case is a useful vehicle for differentiating the financial statement effects of just a few of the accounting method choices available under U.S. generally accepted accounting principles (GAAP). Designed for MBA students, the case presumes a basic understanding of the inventory cost flow methods of LIFO, FIFO, weighted average, and specific identification. Similarly, students must also have a working knowledge of the basic depreciation calculations for straight line, double-declining balance, and units-of-production. A young entrepreneur undertakes a simple modeling task to explore the differential effects of four different inventory methods in combination with three different depreciation methods. Will there be much difference across the options? He is intrigued by the fact that he has some choices of accounting methods available to him as he gets ready to prepare a set of financial statements for his first year of operation.

Keywords: accounting methods, depreciation

JEL Classification: A20, M40

Suggested Citation

Haskins, Mark E., Sack it & Pack it, Inc.: 12 Combinations of GAAP and how They Differ. Darden Case No. UVA-C-2300, Available at SSRN:

Mark E. Haskins (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924 -4826 (Phone)


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