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 […]
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What product costs and period costs go into McDonald’s French fries?
March 6, 2015 
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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 […]
Continue readingHow would using drones or bike messengers to deliver products affect Amazon’s cost structure and risk?
February 27, 2015 0 Comments
Amazon is a huge retailer, but it still struggles to compete against bricks-and-mortar stores when customers want the item “right now.” Amazon is currently testing two options to provide one hour deliveries: drones and bike messengers. A drone is an aircraft that flies without a human on board. It may be operated via remote control, […]
Continue readingWould a Pizza Studio franchisee need to use job-costing or process costing for its made-to-order pizzas?
February 20, 2015 0 Comments
Pizza Studio is a relatively new pizza chain that takes the made-to-order model used by Chipotle and Subway and applies it to pizzas. At a counter, customers order their pizzas with exactly the crust, sauce, cheese, and toppings they want – and then watch as the pizza travels through a conveyor-belt oven, being blasted with […]
Continue readingWhy is Coca-Cola using zero-based budgeting?
February 13, 2015 2 Comments
In recent years, The Coca-Cola Company (KO) is facing decreased global demand for its soft drinks due to customer health concerns about the sugary drinks. It has responded to decreased demand with a variety of ways, including cost cutting measures. In October 2014, Coke announced a $3 billion cost-cutting effort that would impact the entire […]
Continue readingHow does the rising cost of hazelnuts impact NUTELLA®?
February 6, 2015 0 Comments
Hazelnuts are used in high-end chocolate items such as pralines and truffles. In addition, hazelnuts are used in Nutella spread. Turkey supplies more than 70% of the world’s hazelnuts. In 2014, there was a widespread frost in Turkey that damaged hazelnut flowers and cut production of hazelnuts by 28%. The price of hazelnuts more than […]
Continue readingHow will cost standards be impacted at PEZ Candy Inc. by the rising cost of sugar and labor?
January 27, 2015 0 Comments
PEZ Candy Inc. produces the popular small candy that is dispensed in collectible flip-top dispensers. PEZ candy was invented as a breath mint in Vienna, Austria, in 1927. The name PEZ is derived from “pfefferminz” which is the word for peppermint in German. In the United States, PEZ candies are produced in a factory in […]
Continue readingWhat items are product costs versus period costs at the U.S. PEZ Candy Inc. facilities in Connecticut?
January 20, 2015 0 Comments
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 […]
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 readingWhat impact do lower fuel costs and other changes have on American Airline’s break even point?
January 7, 2015 0 Comments
American Airlines Group (AAL), the world’s biggest airline, has been reporting record profits in recent quarters. United Continental Holdings and Southwest Airlines also reported record profits. Part of what has contributed to the record profits has been the decline in the cost of oil. The price of oil has fallen during 2014; we are spending […]
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