The pandemic has greatly impacted movie theater operations. Some theater locations have been forced to close. Major film releases have been delayed or moved to a streaming platform. Moviegoers have been reluctant to share indoor space with strangers. All those factors have contributed to a challenging year for movie theaters. In response to the pandemic, […]
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Why would Boeing outsource its electronics production and then brings its manufacture back in-house?
September 12, 2017 
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In the early 2000s, The Boeing Company (NYSE: BA) outsourced key portions of its aircraft manufacturing and design operations, including electronics and central computers. Beginning in 2007, Boeing’s 787 Dreamliner (a new model for Boeing) was assembled in the U.S., with global subcontractors assigned the work of assembling key sections of the 787. Subcontractors also […]
Continue readingWhat costs would the New England Patriots have considered when analyzing the purchase of team planes and when pricing the rental of its team planes?
August 29, 2017 2 Comments
The New England Patriots recently became the first National Football League (NFL) franchise to buy its own team aircraft. The Patriots purchased two Boeing 767 planes for a total of about $10 million. Both planes have been painted with the team’s logo and colors. The Patriots will use the planes for the ten round trips […]
Continue readingWhat information is relevant when deciding whether to laser tattoo fruits and vegetables instead of using paper or plastic stickers?
February 14, 2017 0 Comments
Every piece of fruit and vegetables sold in U.S. grocery stores has a small sticker on it. These stickers include food type, origin, and whether it was grown organically. Laser Food is a company based in Spain that makes laser marking machines. These Laser Mark machines tattoo every piece of fruit and vegetable with identifying […]
Continue readingWhat managerial accounting tools could be used by Giant Eagle to evaluate whether it should put refrigerator doors in its dairy section?
October 18, 2016 0 Comments
Giant Eagle is a grocery store chain with stores located in Indiana, Maryland, Ohio, Pennsylvania, and West Virginia. Recently, it installed refrigerator doors on the dairy section in many of its stores. Previously, the dairy section was refrigerated but had no doors. The refrigerator doors will reportedly use 78% less energy than the amount of […]
Continue readingWhat costs would be relevant when Amazon considers whether to operate its own cargo freight service?
January 7, 2016 0 Comments
Since its inception, Amazon has relied on third-party shippers, such as UPS and FedEx. In 2013, Amazon experienced a wave of last-minute orders and bad weather left UPS and other shippers unable to deliver Amazon’s packages. Amazon issued apologies and $20 gift cards to customers, but its reputation suffered from the unhappy customers who were […]
Continue readingWhat costs are relevant when pricing a cargo ship cruise?
November 19, 2015 0 Comments
Challenging economic conditions in several countries have pushed freight ship companies to look for additional sources of revenues in addition to the revenue generated by hauling freight across the ocean. In recent years, one additional source of revenue for these freight companies has been to take on cruise passengers in addition to regular cargo. Generally […]
Continue readingWhat happens to the breakeven point when Sports Illustrated lays off all six staff photographers and uses freelancers instead?
March 13, 2015 0 Comments
Sports Illustrated announced in late January 2015 that it would be laying off all six of its staff photographers. Instead, it will be using freelance photographers around the world. Sports Illustrated is one of 90 magazines owned by Time Inc. (TIME). Published 56 times a year, Sports Illustrated is read by over 23 million people […]
Continue readingShould the City of Ravenna outsource its income tax department?
January 13, 2015 0 Comments
The City of Ravenna in Ohio has an income tax on its residents of 2%. For many years, the City had its own income tax department with two employees who processed all of the tax returns from residents. The annual cost of that income tax department was most recently estimated to be $173,000 (“Ravenna will […]
Continue readingHow should the French grocer, Intermarché, set prices for ugly produce?
December 23, 2014 0 Comments
At least one third of fresh produce is discarded, according to estimates from the United Nations Environment Programme (see “Students from France, Mexico and United Kingdom Recognized for Taking up Fight against Food Waste,” United Nations Environment Programme, December 16, 2014, http://www.unep.org/newscentre/Default.aspx?DocumentID=2814&ArticleID=11110&l=en .) Some of the produce is discarded because it is less than perfect […]
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Accounting in the Headlines 