Case Name: Boston Creamery‚ Inc. Short Cycle Process: Who: Frank Roberts‚ VP Sales & Marketing‚ Boston Creamery‚ Inc. 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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Scenario Analysis ------------------------------------------------- Year | ------------------------------------------------- Scenario 1 | ------------------------------------------------- Scenario 2 | ------------------------------------------------- Scenario 3 | ------------------------------------------------- | ------------------------------------------------- 15% Better | ------------------------------------------------- Stated Forecast | -------------------------------------------------
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1 Exercises for Session 7: We solve a selection of these exercises in class. Exercise 1 Taken from Midterm Fall Term 2011 AIM: Traditional versus ABC accounting QUESTION V. 19 POINTS Stellar Stairs Co. designs and builds factory-made premium wooden stairs for homes. The manufactured stair components (spindles‚ risers‚ hangers‚ hand rails) permit installation of stairs of varying lengths and widths. All are made of white oak wood. The company’s budgeted manufacturing overhead costs for 2012 are
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Case Study # 1: South Delaware Coors‚ Inc. Analysis Summary Main Problems Two issues are present in the case. The first is a decision on what research should be conducted by Manson and Associates to allow Larry Brownlow to estimate the feasibility of a Coors beer distributorship for a two-county area in Delaware. This issue is evident‚ even stressed‚ throughout the case. The second issue is a decision on whether or not the distributorship is feasible or‚ in other words‚ a go/no-go decision
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in Cost Control . (Exercise 1-9) Zoya Arbiser‚ regional manager of Gold Medal Sports Shops‚ is reviewing the results of 15 stores in her region. Store managers are moved annually. Each store manager’s income is very dependent on the direct contribution margin of that store. For the past year‚ Store 9 has been managed by a person who has operated several other profitable stores in recent years and is about to be promoted to a larger store. Zoya notices several items that bother her. Store 9 has
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Cumberland Metal Industries – Decision Sheet Objective: To devise a pricing strategy which would allow Cumberland to extract maximum value in the first year and later operate at expected margin Estimation of Market Size Number of feet of driven piles* | 290000000 | 390000000 | Amount of feet per set (1) | 10000 | 10000 | Amount of feet per set (2) | 20000 | 20000 | Number of pads per set | 5 | 5 | Market size (1) | 145000 | 195000 | Market size (2) | 72500 | 97500 | Value provided
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(2) Break-even: $300‚000 Problem 4-20 (2) Break-even: B864‚000 Problem 4-21 (1) Break-even: 12‚500 pairs of shoes; (3) $6‚000 loss Problem 4-22 (3) Net loss: $6‚000; (5a) Break-even: 21‚000 units Problem 4-23 (1b) Break-even: $732‚000; (2b) Margin of safety percentage: 22% Problem 4-24 No check figure Problem 4-25 (1) April net operating income: $21‚800 Problem 4-26 (2)
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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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Managerial Accounting Overview BA 115 Management Accounting Measures‚ analyzes‚ and reports financial and non financial information non-financial that helps managers make decisions to fulfill the goals of an organization organization. Activity IFRS/IAS-based Financial Reports Generally‚ cannot be used for the day-to-day d t d goals of the managers. Financial vs Managerial Acctg MANAGERIAL Primary users Focus and emphasis Rules of measurement and reporting Level of detail Managers
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Chapter 4 Problems 1. Growth and financing (LO4) Philip Morris is excited because sales for his clothing company are expected to double from $500‚000 to $1‚000‚000 next year. Philip notes that net assets (Assets Liabilities) will remain at 50 percent of Sales. His clothing firm will enjoy a 9 percent return on total sales. He will start the year with $100‚000 in the bank and is already bragging about the two Mercedes he will buy and the European vacation he will take. Does his optimistic outlook
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