Ideas with Impact
UNB Faculty of Management

The economy and local traditions in a West African setting present unique pricing and servicing challenges for the owner of a medical laboratory, offering a distinctive learning experience for accounting students.

A recent case study by UNB accounting professor Dr. Afua Asante, titled "Realizing the Dream: Decision-Making in Action," delves into these challenges. Published in the IMA Educational Case Journal, this award-winning case study provides a compelling scenario for students to explore complex accounting processes and cultural practices.

The case focuses on an entrepreneur operating a medical laboratory in the suburbs of a major city in Ghana. The lab is situated within another healthcare facility under a revenue-sharing agreement. According to this arrangement, all payments for lab services are funneled through the main healthcare facility, which retains 40% of the revenue in exchange for covering rent and overhead expenses, as well as referring clients to the lab. The entrepreneur receives the remaining 60%.

As the case unfolds, the entrepreneur notices a sharp decline in clients. He suspects that people within the facility may be redirecting patients to other laboratories run by their friends or relatives, influenced by tribal affiliations. Compounding this issue, the entrepreneur is offered an opportunity to provide health-screening services to a nearby school, albeit at a lower price than his standard rates.

To develop recommendations for the entrepreneur, students are tasked with employing Cost Volume Profit (CVP) analysis and conducting both quantitative and qualitative assessments. Negotiation is a customary practice in this region of Ghana, which introduces another layer of complexity as students must account for erratic changes in pricing over time.

The case study immerses students in the multifaceted nature of accounting in a global context. They must consider social responsibility, risk, and cultural practices alongside profit motives, highlighting the often-conflicting interests that accountants must navigate. By engaging with these real-world dynamics, students gain insights into the broader impacts their decisions can have on various stakeholders.

Case studies like Dr. Asante's bridge the gap between theoretical knowledge and practical application. By tackling real-life scenarios, students expand their perspectives, sharpen their decision-making skills, and deepen their understanding of accounting and management practices. This approach demonstrates how combining thoughtful research with innovative teaching methods can transcend borders and transform the way accounting is taught and learned.

Dr. Asante joined UNB’s faculty of management in January 2023 and teaches accounting. Her research interests include corporate governance, earnings management, director compensation, executive compensation, and mergers and acquisitions. Her case study, "Realizing the Dream: Decision-Making in Action," was chosen as the first place Gold winner in the 2016 IECJ Summer Case Writing Competition. In addition to challenging accounting students to apply their knowledge in a real-world context, it also enhances their appreciation of the intricate balance between economic objectives and cultural considerations in a global setting.

Photo: An award-winning case by Dr. Afua Asante’s exposes accounting students to the intricate balance between economic objectives and cultural considerations in a global setting.

Learn more about Dr. Afua Asante and about UNB’s Faculty of Management.

For more information about this story, contact Liz Lemon-Mitchell.