Horngren's Cost Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText - Access Card Package (16th Edition)
16th Edition
ISBN: 9780134642468
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Textbook Question
Chapter 1, Problem 1.19E
Value chain and classification of costs, fast-food restaurant. Burger King, a hamburger fast-food restaurant, incurs the following costs:
- a. Cost of oil for the deep fryer
- b. Wages of the counter help who give customers the food they order
- c. Cost of the costume for the King on the Burger King television commercials
- d. Cost of children’s toys given away free with kids’ meals
- e. Cost of the posters indicating the special “two cheeseburgers for $2.50”
- f. Costs of frozen onion rings and French fries
- g. Salaries of the food specialists who create new sandwiches for the restaurant chain
- h. Cost of “to-go” bags requested by customers who could not finish their meals in the restaurant
Classify each of the cost items (a–h) as one of the business functions of the value chain shown in Figure 1-2 (page 5).
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Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria’s owner has determined that the shop has two major cost drivers—the number of pizzas sold and the number of deliveries made. Data concerning the pizzeria’s costs appear below:
Fixed cost per month Cost per Pizza Cost per delivery
Pizza ingredients . . . . . . . . . $3.80
Kitchen staff . . . . . . . . . . . . $5,220
Utilities . . . . . . . . . . . . . . . . $630 $0.05
Delivery person . . . . . . . . . . $3.50
Delivery vehicle . . . . . . . . . . $540…
Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria’s owner has determined that the shop has two major cost drivers—the number of pizzas sold and the number of deliveries made.
The pizzeria’s cost formulas appear below:
Fixed Cost per Month
Cost per Pizza
Cost per Delivery
Pizza ingredients
$ 4.90
Kitchen staff
$ 6,010
Utilities
$ 660
$ 0.80
Delivery person
$ 2.60
Delivery vehicle
$ 680
$ 2.00
Equipment depreciation
$ 440
Rent
$ 1,970
Miscellaneous
$ 780
$ 0.10
In November, the pizzeria budgeted for 1,710 pizzas at an average selling price of $20 per pizza and for 190 deliveries.
Data concerning the pizzeria’s actual results in November were as follows:
Actual Results
Pizzas
1,810
Deliveries
170
Revenue
$ 36,800
Pizza ingredients
$ 8,110
Kitchen staff
$ 5,950
Utilities
$ 910
Delivery person
$…
Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria’s owner has determined that the shop has two major cost drivers—the number of pizzas sold and the number of deliveries made.
The pizzeria’s cost formulas appear below:
Fixed Costper Month
Cost perPizza
Cost perDelivery
Pizza ingredients
$
4.60
Kitchen staff
$
6,170
Utilities
$
740
$
0.60
Delivery person
$
3.40
Delivery vehicle
$
760
$
1.60
Equipment depreciation
$
504
Rent
$
2,130
Miscellaneous
$
860
$
0.20
In November, the pizzeria budgeted for 1,950 pizzas at an average selling price of $20 per pizza and for 190 deliveries.
Data concerning the pizzeria’s actual results in November appear below:
Actual Results
Pizzas
2,050
Deliveries
170
Revenue
$
41,680
Pizza…
Chapter 1 Solutions
Horngren's Cost Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText - Access Card Package (16th Edition)
Ch. 1 - How does management accounting differ from...Ch. 1 - Management accounting should not fit the...Ch. 1 - How can a management accountant help formulate...Ch. 1 - Describe the business functions in the value...Ch. 1 - Explain the term supply chain and its importance...Ch. 1 - Management accounting deals only with costs. Do...Ch. 1 - How can management accountants help improve...Ch. 1 - Prob. 1.8QCh. 1 - Prob. 1.9QCh. 1 - What three guidelines help management accountants...
Ch. 1 - Prob. 1.11QCh. 1 - Prob. 1.12QCh. 1 - Prob. 1.13QCh. 1 - Prob. 1.14QCh. 1 - Prob. 1.15QCh. 1 - Which of the following is not a primary function...Ch. 1 - Value chain and classification of costs, computer...Ch. 1 - Prob. 1.18ECh. 1 - Value chain and classification of costs, fast-food...Ch. 1 - Key success factors. Dominion Consulting has...Ch. 1 - Key success factors. Vargas Construction Company...Ch. 1 - Planning and control decisions. Gregor Company...Ch. 1 - Planning and control decisions. Gavin Adams is the...Ch. 1 - Prob. 1.24ECh. 1 - Five-step decision-making process, service firm....Ch. 1 - Professional ethics and reporting division...Ch. 1 - Professional ethics and reporting division...Ch. 1 - Planning and control decisions, Internet company....Ch. 1 - Prob. 1.29PCh. 1 - Prob. 1.30PCh. 1 - Management accounting guidelines. For each of the...Ch. 1 - Prob. 1.32PCh. 1 - Prob. 1.33PCh. 1 - Budgeting, ethics, pharmaceutical company. Chris...Ch. 1 - Professional ethics and end-of-year actions. Linda...Ch. 1 - Professional ethics and end-of-year actions....Ch. 1 - Ethical challenges, global company environmental...
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