Condominium Townhouse Investment (CTI) : A Case for Accounting Courses Where Cases Are Not the Emphasis

This accounting case/instructional aid describes methods and strategies for students new to the case method and an actual case to work on. The objectives of this aid are: 1) to present a detailed approach that a student new to the case method can use for working on cases, independent of the need for instructor aid during class time; 2) to instill into the student that accounting is not always about arriving at a final number, but includes many interesting situations that require a variety of skills from an accountant; and 3) to provide a small real-life actual case for students to work on. The Condominium Townhouse Investment case (CTI) uses introductory management accounting concepts and analysis to introduce students to the case method of learning. The main concepts reinforced are relevant costs and benefits; and opportunity and sunk costs. The student is not only asked to identify these concepts, but to apply them in a decision on whether to rent out or sell a residential property. This decision is something students would be interested in and can relate to personally, because they themselves will eventually be involved in home ownership decisions. Nevertheless, the case focuses on real estate as an investment. The consequences of the alternative decisions are both monetary and qualitative, that require managerial and financial analysis to evaluate