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    Boston Creamery

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    EXECUTIVE SUMMARY Boston CreameryInc‚ is an ice cream company that manufactures and distributes ice cream to wholesalers and retailers. In 1973‚ the company had installed a new financial planning and control system that compares budgeted results against actual results and be able to highlight things that needed corrective actions or commend things that resulted in a favorable overall variance. This year‚ the division has a favorable operating income variance of $71‚700. Highlights: · Jim

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    Boston Creamery

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    process. They can highlight areas which are to be addressed urgently. As per the case‚ they only wish to see the items that need their concern so that action can be taken the next year‚ 1974. Boston Creamery must increase advertisements of their products to address the increase in market size. Boston CreameryInc. lost 1.0% market share – from 50% to only 49%‚ despite the favorable increase in market size variance of $ 167‚610.00 (See Exhibit 2). This was highlighted from the unfavorable result of $

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    Boston Creamery

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    Case 4: Boston Creamery Introduction A new financial planning and control system is only as good as a company’s capacity to implement it effectively. But most importantly‚ many employees see the new system as an end in itself‚ instead of a means to an end. The way standards are formulated play a crucial role in the results of these variances. For instance‚ management decided to use the sales forecasts based on what they made and incurred in the previous year. This would normally be the case

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    Boston Creamery Case

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    MEMO Date:   October 20‚ 2014 To:   Mr. Jim Peterson‚ President‚ Boston CreameryInc.‚ Ice Cream Division From: Subject:   Evaluating the decision choices of Boston Creamery to improve budgeting Introduction Boston Creamery is currently experiencing difficulties with regards to its budgeting process and variance analysis. For the fiscal year 1973‚ the Ice Cream Division has a favorable operating income variance of $71‚700.  The President‚ Jim Peterson feels that the comparisons between budgeted

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    Boston Creamery

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    Colin Drury‚ Management and Cost Accounting – Blessed Farm Partnership Blessed Farm Partnership Rona O’Brien (Sheffield Hallam University) with Jayne Ducken‚ Antony Head and Susan Richardson This case study is taken from Ducker‚ J.‚ Head‚ A.‚ McDonnell‚ B.‚ O’Brien‚ R. and Richardson‚ S. (1998)‚ A Creative Approach to Management Accounting: Case Studies in Management Accounting and Control‚ Sheffield Hallam University Press‚ ISBN 086339 791 3. Introduction This case study is set in the

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    Boston Creamery Solution

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    Case Name: Boston CreameryInc. Short Cycle Process: Who: Frank Roberts‚ VP Sales & Marketing‚ Boston CreameryInc. When: December 31‚ 1973 Where: Case facts not given Issues: 1. The current variance analysis used for the 1973 fiscal years shows an overall favorable net variance of $71‚700. This is an aggregate net figure based upon the favorable variance due to sales and the unfavorable variance due to operations. This net variance figure fails to highlight areas of deficiency to help identify

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    Boston Creamery Case

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    Colin Drury‚ Management and Cost Accounting – Boston Creamery Boston Creamery Professor John Shank‚ The Amos Tuck School of Business Administration Dartmouth College This case is reprinted from Cases in Cost Management‚ Shank‚ J. K. 1996‚ South Western Publishing Company. The case was prepared by Professor John Shank from an earlier version he wrote at Harvard Business School with the assistance of William J. Rauwerdink‚ Research Assistant. This case deals with the design and use of formal

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    using a) Will’s old costing method; b) The new costing method. 1  1a) Based on Will’s old costing method (Volume Based Costing): • California Creamery has a budgeted manufacturing overhead of $600‚000 and a budgeted direct labour cost of $300‚000 • Overhead rate per direct labour cost => $600‚000/$300‚000 = $2 From Exhibit 2 CALIFORNIA CREAMERYINC. Two Product Examples (2004 Data) Polynesian Fantasy • Direct labour $1.20/gallon Overhead assigned to: Vanilla $1.20/gallon  Polynesian

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    Boston Chicken Inc

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    BOSTON CHICKEN‚ INC* At the end of 1996‚ Boston Chicken was one of the hottest names on Wall Street. Operating in the highly competitive restaurant industry‚ the chain had grown from 18 stores in 1991 to over 1‚000 stores in 1996 and in its short history had raised over $1 billion in public offerings. EPS had grown from just $0.06 in 1993 to $1.01 in 1996‚ representing an annual growth rate of well over 100%. At the end of 1996‚ Boston Chicken traded around $40‚ representing a price-earnings multiple

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    Boston Chicken Inc.

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    Ryan Waldschmidt Boston Chicken‚ Inc. 4/20/09 1. The unique business strategies of Boston Chicken acts as a differentiator to the market to obtain a competitive advantage. Boston Chicken’s business strategies are the key to achieving and sustaining this competitive advantage. Boston Chicken was going to utilize several different aspects to achieve their overall business strategy. First‚ they used collaboration with high quality area developers. Instead of franchising to large number of

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