Allocation Decision: A Teaching Case for Accounting Classes

Abstract

This paper presents a teaching case for use in several possible accounting classes. The case deals with the allocation of investment income among different segments of a nonprofit entity. Students are given the opportunity to determine if a proposed allocation is appropriate or to suggest a different allocation. In either case, students are expected to justify their responses. This case allows students to do some allocation calculations and to think critically to evaluate the proposed or alternative allocations.