budget was established soon after the iPhone contract was signed. This budget was divided by 12 to
establish equal monthly budgets to which actual revenues and expenses could be compared. All
budgeting and monthly reporting was done in U.S. dollars.
Professor Emeritus William J. Bruns of the Harvard Business School and Associate Professor Julie H. Hertenstein and Assistant Professor Kelvin
Liu of Northeastern University prepared this case solely as a basis for class discussion and not as an endorsement, a source of primary data, or an
illustration of effective or ineffective management. Despite occasional references to actual companies, this case is fictitious and any resemblance
to actual persons or entities is coincidental.
Copyright © 2012 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685,
write Harvard Business Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. This publication may not be digitized,
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This document is authorized for use only by Carla Fern?ndez in Managerial Accounting at ITESM taught by Wright, ITESM from September 2015 to March 2016.