Broadway theaters saw record attendance in the 2014 – 2015 season, with ticket sales up 7.3% over the prior season (“Theater Bars Are a Smash Hit on Broadway,” Wall Street Journal, December 28, 2015.) As a result, private hospitality companies who operate bars in Broadway theaters have experienced sales growth as well. One such hospitality […]
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Tag Archives: managerial accounting;
How would the breakeven sales of Cafe Edison, a New York City diner, have been affected by a rent increase?
January 12, 2016 
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Recently, several traditional New York City diners have closed, including Cafe Edison, La Parisienne, and Three Star. Real estate costs in New York City continue to increase, thus fueling rent hikes for small businesses like the Cafe Edison. The diner closures have been attributed to both rent hikes and a decline in the number 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 type of responsibility center would a Kohl’s Café within the department store be considered?
November 24, 2015 0 Comments
In an effort to increase the number of shoppers coming into its stores and the length of time those shoppers stay, Kohl’s (KSS) is adding a small café (Kohl’s Café) to each of two of its department stores in the Milwaukee, Wisconsin area. Each café will sell Caribou Coffee items including lattes, cappuccinos, and other […]
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 readingNow that Dyson owns a battery firm, how will the transfer price for batteries used in its vacuums be determined?
October 22, 2015 0 Comments
Dyson, the vacuum cleaner manufacturer, recently made a large investment in a battery technology firm, Sakti3. Sakti3 is a Michigan-based startup that is working on a solid-state battery. These solid-state batteries would last approximately twice as long as current lithium-ion batteries. Solid-state batteries also do not use liquid electrolyte, the lithium-ion substance that can cause […]
Continue readingWould job order costing or process costing be used by the Smarties Candy Company?
October 15, 2015 3 Comments
Smarties come in six flavors: white (orange crème), yellow (pineapple), pink (cherry), green (strawberry), purple (grape), and orange (orange). Smarties are gluten free and vegan and have 25 calories per roll of 15 candies. The main ingredient in Smarties is dextrose, a form of sugar. The Smarties Candy Company, founded in 1949, makes its Smarties […]
Continue readingWhat costs are included for a bottle of water at the JFK International airport if activity-based costing (ABC) is used for product costing?
May 5, 2015 1 Comment
In a recent Wall Street Journal article (“The Price You Pay for Water at the Airport,” Scott McCartney, April 22, 2015), the cost of a bottle at various airports was compared to the cost of that same bottle of water at a convenience store. A 20-ounce bottle of Dasani water typically costs about $0.99 at […]
Continue readingHow does shifting the sales mix from Budweiser macrobrew beer to Elysian and other craft beers affect Anheuser-Busch’s break even sales volume?
April 7, 2015 0 Comments
Overall, there is flat demand in the beer industry. Anheuser-Busch InBev (NYSE: BUD), based in Leuven, Belgium, is pursuing a “premiumization” strategy in the alcohol market to more aggressively market higher-priced brands. It is working to expand its sales of regional and national craft brands, including Shock Top and Goose Island. It is also acquiring […]
Continue readingWhy is Campbell Soup Company using zero-based budgeting?
March 25, 2015 0 Comments
Consumers are increasingly distrusting “Big Food,” and Campbell Soup Company (CPB) is working to counter the effects of that trend by offering more healthy or natural alternatives. For example, Campbell’s recently introduced a new line of organic soups, Campbell’s® Organics, and acquired both Bolthouse Farms juices and Plum Organics baby food. In addition to expanding […]
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