Crossroads Car Wash: When Family and Finances Collide

Abstract

ABSTRACT This case allows students to apply managerial accounting knowledge in a practical, real-world setting. Integrating both financial and nonfinancial considerations, students are charged with making a recommendation to the Garcias, the owners of a family-owned and operated car wash (Crossroads), who are forced to make a difficult decision between a financially secure retirement or continuing to operate the business that supports their children and at-risk employees. This case can be used as is or modified for use in undergraduate/graduate managerial accounting courses and is intended to challenge students (1) to use managerial accounting knowledge and concepts to identify issues and relevant costs, (2) to understand the challenges and risks associated with selling a family-owned business, (3) to apply managerial accounting skills to the decision-making process, and (4) to analyze, synthesize, and evaluate financial and nonfinancial considerations to make a recommendation on selling or continuing to operate a family-owned small business.