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

Strategic positioning, Strategic Positioning The company must identify ...

Strategic Positioning The company must identify its strategic choices. This can be done from the firm’s objectives, which emanates from the firms mission. Strategies have to be

Determine the nature of accounting, The Nature of Accounting Accounti...

The Nature of Accounting Accounting is process of recording, analyzing, summarizing, and interpreting financial (money-related) activities to allow individuals as well as org

Cost behaviour, How costs behave as the level of activity/volume changes.  ...

How costs behave as the level of activity/volume changes.  Why an understanding of cost behaviour is important ? Types Variable e.g. petrol, direct materials Fixed e.g.

Markov analysis, Markov Analysis It is a way of analyzing the current mov...

Markov Analysis It is a way of analyzing the current movement of some system in an effort to predict the future movement of the same system. There are two elements that must be

Service time-probability distribution curve, Service time-probability distr...

Service time-probability distribution curve A common example is that service times follow an exponential probability distribution i.e. y=e -x Service channels - t

How would you characterize the politics of food, Given the persistent probl...

Given the persistent problem with starvation in some parts of the world, and the anticipated population growth in developing nations, do we need genetically modified foods? Is it r

What are the advantages of break even charts, What are the Advantages or us...

What are the Advantages or uses of break even charts Computation of break even point or presentation of cost volume and profit relationship by way of break even charts has the

Generates paychecks and management reports, Time sheets are collected in a ...

Time sheets are collected in a batch, and the information is manually keyed into the system. This data is now stored on a magnetic disk. An editing program is run, which verifies w

Impact of Cost Structure., You are required to provide a report of approx 5...

You are required to provide a report of approx 500 words or less (excluding attachments and references), accompanied by relevant calculations, in MS Word, MS Excel and/or PDF forma

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