Tag Archives: cost behavior

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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New data analytics case for introductory managerial accounting available – KAT Insurance!

In addition to the data analytics case we posted last week for introductory financial accounting, we have also developed a case, using the same KAT Insurance Company data set, for introductory managerial accounting. The three of us who teach introductory accounting (Wendy Tietz, Jennifer Cainas, and Tracie Miller-Nobles) developed a KAT Insurance case to introduce […]

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How will Walmart’s use of robots change its break even point?

Walmart (WMT) is robotic janitors in some of its stores. Walmart has purchased several Autonomous Cleaner (Auto-C) robots from Brain Corporation. An Auto-C robot looks like a Zamboni, the machine used to clean ice rinks. The robots scrub floors and clean store aisles. Sensors in the robots allow them to navigate around customers and other […]

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Does each Subway $5 Footlong cost the franchisee more than $5?

Subway, the fast food restaurant franchise, recently announced it is bringing back the “$5 Footlong” promotion. Hundreds of Subway franchise owners are protesting the promotion, saying that they cannot afford to sell the footlong sub sandwiches for $5. Assume that the costs related to a Subway footlong and a Subway franchisee include the following: Cost […]

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7 Excel projects for your managerial accounting course

Welcome to spring semester! I thought I would repost this information as you are getting ready to kick off the new semester. If you teach managerial accounting, you may want to look at Dr. Karen Braun’s Excel projects for managerial accounting. She has created seven Excel projects on various topics in managerial accounting, complete with […]

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Karen Braun’s 7 Excel projects for managerial accounting

If you teach managerial accounting, you may want to look at Dr. Karen Braun’s Excel projects for managerial accounting. She has created seven Excel projects on various topics in managerial accounting, complete with step-by-step student instructions and instructor solutions. The topics include: Job costing Cost behavior CVP analysis Process costing Budgeting Flexible budgeting Division evaluation […]

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What costs are relevant when pricing a cargo ship cruise?

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 […]

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What happens to the breakeven point when Sports Illustrated lays off all six staff photographers and uses freelancers instead?

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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How would using drones or bike messengers to deliver products affect Amazon’s cost structure and risk?

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, […]

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How does the use of a robotic shopping assistant impact the breakeven point and operating leverage at Lowe’s?

Lowe’s, a U.S.-based chain of retail home improvement stores, is introducing a robotic shopping assistant into its Orchard Supply Hardware store in San Jose, California.  The robot, called OSHbot, will greet customers and assist customers in finding products.  In addition, the robot has one large screen on the front and one on the back.  The […]

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