Chipotle Managerial Accounting

3880 Words16 Pages
Fascinated by the simple cost-effective business models he observed at small burrito shops in San Francisco, Steve Ells founded the first Chipotle Mexican Grill in 1993 near the University of Denver. By putting his own spin on the traditional casual dinning approach, Chipotle is now an enormously successful publicly traded company with over 1,000 locations in 38 states. Although Steve was first drawn to the business model by its limited cost structure, he aspired to run his business in a sustainable manner. The company uses management accounting to ensure their high standard operating decisions will also provide the company with enough profit to remain competitive and continue to grow. Customer Value Proposition Differentiating…show more content…
Is this viewed as a leading (driver) or lagging (outcome) measure? Lagging Explain the logic underlying the measure. The goal for expanding location base is to spread Chipotle’s message and increase its share in the market. This would lead to increased revenue growth. Data source – How would the firm collect this measurement information? Accounting system that will monitor revenue for individual locations. How often would the measurement be reported? Monthly Measurement #3 Measurement Name: Operations and Management Processes BSC perspective that measurement is included in: Internal Perspective Measurement that is relevant to the firm’s strategy to: Achieving operational efficiency. Is this viewed as a leading (driver) or lagging (outcome) measure? Lagging Explain the logic underlying the measure. The goal for attaining operational efficiency is to allow Chipotle to perform at its most effective level possible. Data source – How would the firm collect this measurement information? Accounting system that will monitor price and quantity variance in the supplies the company uses in production. How often would the measurement be reported? Monthly Measurement #4 Measurement Name: Strategic Ingredients BSC perspective that measurement is included in: Learning and Growth Perspective Measurement that is relevant to the firm’s

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