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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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What items are product costs versus period costs at the U.S. PEZ Candy Inc. facilities in Connecticut?

PEZ Candy Inc. produces the popular small candy that is dispensed in collectible flip-top dispensers.  In the United States, PEZ candies are produced in a factory in Connecticut. The Connecticut location also houses PEZ’s US headquarters and a PEZ Visitors Center.  PEZ candy is made from sugar, fruit flavoring, coloring, and corn syrup; the ingredients […]

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What types of costs are incurred when manufacturing marshmallow cookies?

This posting is about an activity you can use to discuss the various types of manufacturing costs.  The cost object is a box of marshmallow cookies.  The first step is to show (or ask students to watch) this 4:38 minute “How It’s Made” video about marshmallow cookies. Questions 1) What are the direct materials of the […]

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