Tag Archives: managerial accounting;

Why would Boeing outsource its electronics production and then brings its manufacture back in-house?

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 […]

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What costs would the New England Patriots have considered when analyzing the purchase of team planes and when pricing the rental of its team planes?

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 […]

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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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Do cash dividends paid affect a company’s breakeven point?

A recent blog posting for the Wall Street Journal had the headline “Big Oil Reaches for a Modest Goal: Breaking Even – Energy Journal[1].” The article stated that the “two-year slump in oil prices led…[big oil companies]…to rein in spending and lay off workers but the firms still didn’t make enough money in 2016 to […]

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What could a Logitech staff accountant have done if he/she knew that the CFO and controller failed to write down the discontinued Revue parts inventory?

In the fourth quarter of 2010, Logitech International released the Revue, a TV set-top box designed to integrate cable/satellite TV with internet content. The Revue Google search bar would be able to find any desired content from any provider and project that content to the TV screen. The Revue was manufactured by contract manufacturers, not […]

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If the AMD Ryzen 16-Core CPU saves $1,000 per computer manufactured, how would computer manufacturers’ variances be impacted?

AMD is rumored to be releasing a new 16-core, 32 thread CPU, that would be significantly more powerful than its competitors – and it would be about $1,000 less expensive than the closest Intel CPU. This AMD chip is named “AMD Ryzen” and it has six more cores than Intel’s current primary desktop CPU – […]

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How would process costing work for gummy bears to be produced at the new US Haribo manufacturing plant?

Haribo has manufactured gummy bears, since 1920. Those bears are currently made in 16 plants around the world. Starting in 2020, those gummy bears will also be made in the US when Haribo opens a new plant in Wisconsin. Worldwide, about 100 million gummy bears are made by Haribo per day. The ingredients in gummy […]

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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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Would job costing or process costing be used by the manufacturer of the dye used to turn the Chicago River green for St. Patrick’s Day?

Since 1962, members of the Plumbers Local have been dyeing the Chicago River green in honor of St. Patrick’s Day. Similar river dyeing occurs in Tampa, Austin, and elsewhere. In 1961, the mayor of Chicago wanted to find out where raw sewage was being dumped into the Chicago River. He directed that a special green […]

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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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