Case Name: Boston Creamery‚ Inc. Short Cycle Process: Who: Frank Roberts‚ VP Sales & Marketing‚ Boston Creamery‚ Inc. When: December 31‚ 1973 Where: Case facts not given Issues: 1. The current variance analysis used for the 1973 fiscal years shows an overall favorable net variance of $71‚700. This is an aggregate net figure based upon the favorable variance due to sales and the unfavorable variance due to operations. This net variance figure fails to highlight areas of deficiency to help identify
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EXECUTIVE SUMMARY Boston Creamery‚ Inc‚ is an ice cream company that manufactures and distributes ice cream to wholesalers and retailers. In 1973‚ the company had installed a new financial planning and control system that compares budgeted results against actual results and be able to highlight things that needed corrective actions or commend things that resulted in a favorable overall variance. This year‚ the division has a favorable operating income variance of $71‚700. Highlights: · Jim
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MEMO Date: October 20‚ 2014 To: Mr. Jim Peterson‚ President‚ Boston Creamery‚ Inc.‚ Ice Cream Division From: Subject: Evaluating the decision choices of Boston Creamery to improve budgeting Introduction Boston Creamery is currently experiencing difficulties with regards to its budgeting process and variance analysis. For the fiscal year 1973‚ the Ice Cream Division has a favorable operating income variance of $71‚700. The President‚ Jim Peterson feels that the comparisons between budgeted
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Colin Drury‚ Management and Cost Accounting – Boston Creamery Boston Creamery Professor John Shank‚ The Amos Tuck School of Business Administration Dartmouth College This case is reprinted from Cases in Cost Management‚ Shank‚ J. K. 1996‚ South Western Publishing Company. The case was prepared by Professor John Shank from an earlier version he wrote at Harvard Business School with the assistance of William J. Rauwerdink‚ Research Assistant. This case deals with the design and use of formal "profit
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Case 4: Boston Creamery Introduction A new financial planning and control system is only as good as a company’s capacity to implement it effectively. But most importantly‚ many employees see the new system as an end in itself‚ instead of a means to an end. The way standards are formulated play a crucial role in the results of these variances. For instance‚ management decided to use the sales forecasts based on what they made and incurred in the previous year. This would normally be the case
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interested in going through the whole variance analysis process. They can highlight areas which are to be addressed urgently. As per the case‚ they only wish to see the items that need their concern so that action can be taken the next year‚ 1974. Boston Creamery must increase advertisements of their products to address the increase in market size. Boston Creamery‚ Inc. lost 1.0% market share – from 50% to only 49%‚ despite the favorable increase in market size variance of $ 167‚610.00 (See Exhibit
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Partnership Rona O’Brien (Sheffield Hallam University) with Jayne Ducken‚ Antony Head and Susan Richardson This case study is taken from Ducker‚ J.‚ Head‚ A.‚ McDonnell‚ B.‚ O’Brien‚ R. and Richardson‚ S. (1998)‚ A Creative Approach to Management Accounting: Case Studies in Management Accounting and Control‚ Sheffield Hallam University Press‚ ISBN 086339 791 3. Introduction This case study is set in the British Isles‚ which has experienced major changes in its agricultural sector since the late
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NSTRUCTOR LEDIIA CIIRKO LED A C RKO Date 25th May‚ 2011 BOSTON CHICKEN INC (CASE ANALYSIS) Questions 1. How is the company reporting on its performance and risks? What are the keys assumptions behind these policies? Do you think that its accounting policies reflect the risks? 2. What adjustments‚ if any‚ would you make to the firm’s accounting policies? 3. What questions would you ask management about the company’s performance? 4. How is Boston Chicken performing? 5. What assumptions is the market
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Natalie Simmermon ACC 503 California Creamery‚ Inc. (Activity-Based Costing) 1. What is the cost of the two products under traditional costing? Under traditional accounting the costs for each flavor were intuitively wrong. The cost to produce a gallon of Polynesian was $5.60‚ only 20 cents more than Vanilla comparatively. One would assume that an exotic flavor would have a significantly higher cost proportionally. 2. What is the cost of the two products under activity-based costing
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products reached the Boston market around 1985&1986 and Mayor Flynn make curtailing drug abuse a top priority. They had limited the scope of the study and use a methodology within their budget of $20‚000 and with appropriate research questions for study. Based on the findings‚ all Harvard business school students agreed to use storytelling and use realistic‚ local characters in their ads. Also Community Programs are crucial in decreasing demand for drugs. RESEARCH/ CASE QEUSTIONS: What‚ actually
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