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What costs are relevant when determining how many pizzas a month Zume Pizza must sell to break even?

Zume Pizza uses a combination of robots, artificial intelligence (AI), and GPS in its food trucks to deliver pizzas to customers’ houses just as the pizza is finished baking. Pizzas are actually prepared and baked in the Zume pizza truck by an employee assisted by robots.  Zume Pizza started operations in April 2016 and is currently […]

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How might Target use data analytics to help make decisions?

In a recent visit in early February to a Target (NYSE: TGT) store in northeast Ohio, snow shovels were on display next to swimming suits, offering an interesting juxtaposition. [The average temperature in northeast Ohio in February is about 31° Fahrenheit, accompanied by an average monthly snowfall of about 15.”] An article in the Wall […]

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How do the sale of its Craftsman brand, a loan from a hedge fund, and the sale of real estate impact Sears’ statement of cash flows?

In January 2017, Sears Holding Corporation (NASDAQ: SHLD) sold its Craftsman brand for $900 million to Black & Decker, the manufacturer of power tools and accessories. That same month, a hedge fund affiliated with the CEO of Sears loaned Sears $500 million. Sears also has plans to sell about $1 billion of real estate assets […]

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What information is relevant when deciding whether to laser tattoo fruits and vegetables instead of using paper or plastic stickers?

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 […]

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Would Wilson Sporting Goods use job costing or process costing for its footballs?

Footballs for the National Football League (NFL) are made by the Wilson Sporting Goods Company. Wilson makes about 700,000 footballs for NFL games each year, including the Super Bowl. The footballs are made at a Wilson factory in Ada, Ohio. Every Super Bowl football has been made at this small factory. The equipment used to […]

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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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How many Classic Moana™ dolls must Disney sell to cover its costs of developing the sustainable packaging for the doll?

Walt Disney’s new movie, Moana™, opened in theaters across the United States in late November 2016.  The movie is about an island teenager, Moana™, who sets out on an action-packed voyage to save her people. Disney has released a doll modeled after the heroine of the movie, its Classic Moana™ doll.  The doll is 11” […]

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What information and tools would Delta Air have used when it decided to invest in an RFID-based luggage tracking system for preventing lost bags?

On average, it costs an airline $70 to get a lost bag back to its owner. The airline industry as a whole lost $2.3 billion to mishandled luggage in 2015. Currently, when you check at bag with an airline, a barcode sticker is printed out and stuck on your bag.  On a good day, only […]

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How would the strike at Just Born, the maker of Peeps, impact its standard costing variances?

Just Born Quality Confections (Just Born) makes marshmallow Peeps, Mike and Ikes, Hot Tamales, and other candies. The company has approximately 600 employees and is privately-held. Its headquarters and Peeps factory are in Bethlehem, Pennsylvania.  In September 2016, the factory employees represented by the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union of America Local 6 […]

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