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

Manufacturing cost, what are the different arguments against direct materia...

what are the different arguments against direct materials, direct labor, and factory overhead

Budget Problem, BUDGET PROBLEM The Budget Director of Dave, Inc. with the ...

BUDGET PROBLEM The Budget Director of Dave, Inc. with the assistance of the Controller, Production Manager and the Sales Manager has gathered the following data for use in develop

Prepare two tables showing net profit, Prepare two tables showing net profi...

Prepare two tables showing net profit, residual income and return on investment for each year of the project and also net present value (NPV) for: (i) The BEST OUTCOME; (ii) The

Invoice discounting or factoring, If a company creates sales to a number of...

If a company creates sales to a number of customers on credit terms this will have to wait for two or still three months before its debtors pay that they owe. It means that the deb

Determine the zero bases budgeting according to leonard mere, Determine the...

Determine the Zero bases budgeting According to Leonard mere According to Leonard mere,  ZBB is a technique which complements and links the existing planning budgeting and revi

Corporate Governance., Discuss the dominant compensation philosophy, share ...

Discuss the dominant compensation philosophy, share value creation and the link between company size and executive pay. Solve Parmalat''s case, which may be found in reading No. 8.

Quadratic loss function, Consider the following quality data for three diff...

Consider the following quality data for three different manufacturers of automobile weather-strips: Weather-strip Bulb Dimension Specification y=20 +or- 4mm

Role of the management accountant, Define role of Management Accountant ...

Define role of Management Accountant The main role of management accountant is defined below. Planner e.g. budgeting Information provider e.g. operating statement

Explain the ratio analysis according to kosher, Explain the Ratio analysis ...

Explain the Ratio analysis according to kosher A ratio is the relation of the amount a to another b expressed as the ratio of a to b; a: b (a is to b) or a as simple fraction i

Strategic plan, How to write introduction on strategy plan

How to write introduction on strategy plan

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