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Question: Based on Coffee, costs, and competition: a case exercise for managerial accounting.
What has the Snack Shop done to try to contend with its new competitor? What else can they do? Should they make the decision to accept FoodFunds? Should they try to compete for some other way? Should they consider a new coffee vendor? What recommendations would you make to maintain/improve profitability and strategically compete against the new rival (and existing competitors)? What recommendations would you make to improve operations in the areas of staffing, marketing, inventory management, facilities management, internal controls, and accounting? In the broadest sense, is running the Snack Shop a worthwhile endeavor for the BSC? What other information/data might be helpful from the Snack Shop in order to facilitate your recommendations?
What are the differences between job cost and process cost systems? When would it be appropriate to use each type of system? What is the effect of each system on the product cost?
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