Business application, Managerial Accounting

Assignment Help:

Conceptual understanding: defining in identifying relevant information


Business application - Dave burgers is in the fast food restaurant business. One component of it's marketing strategy is to increase sales by expanding and foreign markets. It uses both financial and nonfinancial quantitative and qualitative information when deciding whether to open restaurants abroad. Big decided to open a restaurant in Prague(Czech Republic) five years ago. The following information help the managers in making that decision:

Financial quantitative information
- operating information
-estimated food, Labor, and other operating costs(E. G., Taxes, insurance, utilities, and supplies)
-Estimated selling price for each food item.
-Capital investment information.
- Cost of land, building, equipment, and furniture.
-Financing options and amounts.


Nonfinancial quantitative information
-Estimated daily number of customers, hamburgers to be sold, employees to work.
-High traffic time periods.
- Income of people living in the area.
-Ratio of population to number of restaurants in the market area.
-Traffic counts in front of similar restaurants in the area.

Qualitative information
-Government regulations, taxes, duties, tariffs, political involvement in business operations.
-Property ownership restrictions.
-Site visible inability.
-Accessibility of store location.
-Training process for local managers.
-Hiring process for employees.
-Local customs and practices.


Big Burgers has hired you as a consulant and given you an income statement comparing the operating incomes of its five restaurants in Eastern Europe. You have notices that the Prague location is operating at a loss (including unallocated fixed costs) and must decide whether to recommend closing that restaurant.


Review the information used in making the decision to open the restaurant. Identify the type of information that would also be relevant in deciding whether to close the restaurant. What additional information would be relevant in making your decision?

 


Related Discussions:- Business application

Illustrate the general design of waste heat boilers, Illustrate the General...

Illustrate the General Design of Waste heat boilers The boiler system shall be made up of a fire tube type heat exchanger, a steam drum with relief valve internals, risers and

Explain cost flow in activity based costing, Normal 0 false f...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Motives for conducting cash balances, In this section we have discussed the...

In this section we have discussed the motives for conducting cash balances. In addition, we have discussed cash deficit or surplus situation and how it can be contained by the use

Explain briefly about variances, Normal 0 false false false...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Accounting period, 1. In common, accounting period is the time period refle...

1. In common, accounting period is the time period reflected by a series of financial statements.  2. In terms of taxation, it is twelve-month period a taxpayer uses to know

Monitoring receivables, A firm requires continuously monitoring and control...

A firm requires continuously monitoring and controlling its receivables to make sure that the dues are paid on the due date and no dues stay outstanding for a long period of time.

Chicken and hawk game, Chicken and Hawk (dove game) Two players meet at...

Chicken and Hawk (dove game) Two players meet at a one-lane bridge and each must choose whether to cross first or wait for the other. If both play Tough (T), they crash in the

Definition of the mission and goals of the organization , Definition of the...

Definition of the Mission and Goals of the Organization Generally the organization has already established mission and aim statements. Though, it may be essential to redefine

What is standard costing, What is Standard costing Standard cost is a p...

What is Standard costing Standard cost is a predetermined cost. It is a determination in advance of production of what should be the cost. When standard costs are used for the

Recognition of the organization''s decision, Recognition of the Organizatio...

Recognition of the Organization's Decision Units and Decision Packages ZBB decision unit is an operating division for which decision packages are generated and analyzed. It ca

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd