This case concerns one of the most important topics in financial accounting and reporting: revenue recognition. It is designed for use in a required MBA financial accounting course or determined in an MBA elective course in financial reporting and analysis. The company, better buy Inc., is an electronics retailer sell televisions and other electronic products. The company is a bit unique, but that it not only sells major brand televisions, but it also sells under its own brand TVs that carry a one-year Warr … Read more »

This case concerns one of the most important topics in financial accounting and reporting: revenue recognition. It is designed for use in a required MBA financial accounting course or determined in an MBA elective course in financial reporting and analysis. The company, better buy Inc., is an electronics retailer sell televisions and other electronic products. The company is a bit unique, but that it not only sells major brand televisions, but it also sells TVs under its own brand, a guarantee of one year for the non-responsibility of the manufacturer to bear the dealer. The company also offers an additional two-year warranty on its TVs, which are also the sole responsibility of the dealer. The case asks students to address a number of revenue recognition situations together with the associated costs. These situations, you are selling a product, where the sale price includes a warranty provision sell a “bundle” of a product and sell an extended warranty, and a bunch of a product sell and sell an extended warranty where the company has signed an agreement to outsource maintenance of their extended warranties
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from
Brandt R Allen,
E. Richard Brownlee II
Source: Darden School of Business
3 pages.
Release Date: 26 October 2011. Prod #: UV5247-PDF-ENG
Buy Better, Inc. HBR case solution

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