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What product costs and period costs go into making Dunkin’ donuts?

The first Dunkin’ restaurant opened in 1948 in Quincy, Massachusetts, and is still in operation today. The recipe for Dunkin’ donuts has been a secret for 65 years.  To see how Dunkin’ donuts are made, see the video at https://www.youtube.com/watch?v=EwTRmfWUxlw (0:43 min.). The Dunkin’ donuts at a restaurant are not usually made at that location. […]

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What steps are in the value chain for vegetables grown and sold by Dussel Farm?

Dussel Farm Feed Store is a family owned and operated farm and store that has been in the Dussel family since 1948. It grows and sells a wide variety of produce, including vegetables and fruits. In addition to the produce, Dussel operates a feed store. Each year, it plants a variety of vegetables, such as […]

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What types of costs are associated with a Stance™ sock vending machine located in an airport?

At Cleveland Hopkins International Airport in northeastern Ohio, a vending machine that dispenses socks was recently installed. Located in the C concourse, the Stance sock vending machine offers a variety of what Stance refers to as “uncommon” socks. The designs on the socks in the Cleveland airport vending machine include Cleveland Browns, Cleveland Indians, patriotic […]

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Introductory managerial accounting Jeopardy game for end-of-semester review

A few days ago, I shared a Jeopardy-style PowerPoint file that can be used for an end-of-semester review in introductory financial accounting classes. In this post, I am sharing a Jeopardy-style game that covers basic topics within an introductory managerial accounting course. This PowerPoint file contains a Jeopardy-style game suitable for use in an introductory […]

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What does The Cheesecake Factory’s inventory include and where is it located on its financial statements?

The Cheesecake Factory Incorporated (NASDAQ: CAKE) operates over 200 restaurants and two bakeries in the United States. In its two bakeries, it bakes and prepares more than 70 desserts, both for its own use in its restaurants and for sale to a wide variety of wholesalers and retailers. The Cheesecake Factory’s inventories consist of restaurant […]

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What costs at Uber’s Manhattan office would be direct versus indirect for various cost objects?

Uber Technologies, Inc. (Uber) is a privately-held $66 billion ride-sharing company that has offices all over the world. Uber has over 8,000 employees, not counting the drivers who are categorized as independent contractors. One of Uber’s offices is in Manhattan in New York City. The office is in an old freight warehouse and former nightclub, […]

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What steps are in the value chain for pumpkins grown and sold by Beckwith Orchards?

Beckwith Orchards is a family owned and operated farm and store that has been in the Beckwith family since 1878. It grows and sells a wide variety of produce, including apples, peaches, pears, gourds, and pumpkins. Each year, it plants a variety of pumpkins. In addition to the common orange oval pumpkin used to carve […]

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At Lululemon, how can sales be up while gross margin is down?

Founded in 1988, Lululemon Athletica Inc. (LULU) is an athletic apparel company headquartered in Canada. Lululemon has helped to popularize the ubiquitous yoga pants in the U.S. While it has experienced some sales declines due to a recall of yoga pants in 2013 for being too sheer, Lululemon has revamped its product line to update […]

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What are the product and period costs associated with a Broadway theater bar?

Broadway theaters saw record attendance in the 2014 – 2015 season, with ticket sales up 7.3% over the prior season (“Theater Bars Are a Smash Hit on Broadway,” Wall Street Journal, December 28, 2015.) As a result, private hospitality companies who operate bars in Broadway theaters have experienced sales growth as well. One such hospitality […]

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What product costs and period costs go into McDonald’s French fries?

McDonald’s recently released a video featuring Grant Imahara, a former host from “Mythbusters,” about how its French fries are made.  Some people have said that its French fries are mashed-up potatoes (or other ingredients) pressed into French fry shapes.  To see how the French fries are actually made, see the video at http://time.com/3675518/how-mcdonalds-makes-french-fries/ (5:06 minutes.) Questions […]

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