Boston creamery final
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This document summarizes a case study about Boston Creamery, an ice cream company that installed a new financial planning and control system to compare budgeted and actual results. The summary focuses on 4 key characters - the President, VP of Sales and Marketing, VP of Operations, and Controller. It provides background on the company and system, and describes how the VP of Operations and Controller analyze variances in areas like market growth, manufacturing costs, and product mix to identify issues and recommendations. The document is intended to demonstrate how a variance analysis works in practice.
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Boston creamery final
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This document summarizes a case study about Boston Creamery, an ice cream company that installed a new financial planning and control system to compare budgeted and actual results. The summary focuses on 4 key characters - the President, VP of Sales and Marketing, VP of Operations, and Controller. It provides background on the company and system, and describes how the VP of Operations and Controller analyze variances in areas like market growth, manufacturing costs, and product mix to identify issues and recommendations. The summary is intended to highlight the essential information about the case study in 3 sentences or less.Download
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Definition of standard cost, target costing, kaizen costing and some mathematical problem with requirements.LearningObjectivesAfter studying Chapter 8, you will be a.docx
LearningObjectivesAfter studying Chapter 8, you will be a.docxcroysierkathey
油
LearningObjectives
After studying Chapter 8, you will be able to:
Explain the signi鐃icance of pro鐃it analysis for an organization.
Describe the major characteristics and conditions of a standard cost system.
Understand the information contained in a standard cost sheet.
Compute materials price and usage variances, and identify potential causes of such variances.
Compute labor rate and ef鐃iciency variances, and identify potential causes of such variances.
Explain the major considerations that are the basis of standard costs for overhead and compute
budget variances and capacity variances for overhead.
Explain why the capacity variance is related only to 鐃ixed overhead costs.
Understand issues relating to variance investigation and disposal of variances.
8 Cost Control Through Standard Costs
nd3000/iStock/Thinkstock
Explain how standard costs can be used in various different settings.
Describe ethical considerations relating to standards and variances.
WhereDoIStartWithStandardCosts?
Jean-Claude Recca, President of Rue de Lorraine, a chain of fast-food restaurants in central France, just
returned from a reunion of his INSEAD graduating class. During the day of activities in the Riviera, he talked
with several of his classmates who have become extremely successful in various businesses. One of those
classmates suggested to Jean-Claude that adoption of a standard cost system eliminated most of her 鐃irms
unacceptable scrap and spoilage, caused an examination of nonvalue-added activities, and substantially
reduced several inef鐃icient operations.
Jean-Claude did not know whether his restaurant chain would really bene鐃it from a standard cost system. He
wondered: If he makes the change, which costs should be put on standards? How does he set up standards?
When do variances mean something? Isnt a standard cost system expensive to use? Isnt it a pain in the
derriere? Wouldnt a tight budget do the same thing?
These questions were more than Jean-Claude could consider. He decided to bounce the idea of standard
costs off his controller.
In measuring success in any undertaking, a comparison is usually made between actual performance and expected
performance. Any difference is a variance. A manager is then left with the responsibility to explain the what, why,
and how of the variance. In doing so, the manager must understand the in鐃luence of key variables on the actual
results, focus on areas that deserve more detailed investigation, and determine changes that must be made in future
planning and control. This chapter introduces the concept of pro鐃it analysis and then concentrates on variances
associated with a standard cost system for direct materials, direct labor, and factory overhead.
8.1Pro鐃itAnalysis
Pro鐃it is an overall measure of how well an organization is doing. A pro鐃it variance then is the difference between
the actual net income and the planned net income for the same period. The causes of such a variance are related to
...Required ResourceTextSchneider, A. (2017).油Managerial Accounti.docx
Required ResourceTextSchneider, A. (2017).油Managerial Accounti.docxaudeleypearl
油
Required Resource
Text
Schneider, A. (2017).油Managerial Accounting: Decision making for the service and manufacturing sectors油(2nd ed.) [Electronic version]. Retrieved from https://content.ashford.edu/
揃 Chapter 5: Joint Cost Allocation and Variable Costing
揃 Chapter 8: Cost Control Through Standard Costs
Recommended Resource
Multimedia
Crosson, S. (2007).油PVA ABC JIT 4 ABC example油(Links to an external site.)油[Video File]. Retrieved from http://www.youtube.com/watch?v=eyH4l3VvOCU
Discussion 1 油Allocating Joint Costs
Describe the three methods used to allocate joint costs. What are the advantages/disadvantages of each allocation method? Which method would you recommend? Why? Support your position with evidence from the text or external sources. Your initial post should be 200-250 words.
Guided Response:油Review several of your classmates postings.油 Respond to at least two of your classmates by asking a question to challenge their recommended allocation method.油油 Support your question and/or comments with evidence from the text or external sources.
Discussion 2 Variable/Absorption Costing
As you read in Chapter 8, there are arguments (for and against) variable costing and absorption costing. Select one of these costing methods and explore the various arguments.油 Determine whether you are for or against this selected method. Provide evidence from the text to support your position. Your initial post should be 200-250 words.
Guided Response:油Review several of your classmates postings. Respond to at least two of your classmates who explored a different costing method than your own by stating whether you agree or disagree with their position. Be sure to include cited support/examples to clarify your point of view.
LearningObjectives
After studying Chapter 8, you will be able to:
Explain the signi鐃icance of pro鐃it analysis for an organization.
Describe the major characteristics and conditions of a standard cost system.
Understand the information contained in a standard cost sheet.
Compute materials price and usage variances, and identify potential causes of such variances.
Compute labor rate and ef鐃iciency variances, and identify potential causes of such variances.
Explain the major considerations that are the basis of standard costs for overhead and compute
budget variances and capacity variances for overhead.
Explain why the capacity variance is related only to 鐃ixed overhead costs.
Understand issues relating to variance investigation and disposal of variances.
8 Cost Control Through Standard Costs
nd3000/iStock/Thinkstock
Explain how standard costs can be used in various different settings.
Describe ethical considerations relating to standards and variances.
WhereDoIStartWithStandardCosts?
Jean-Claude Recca, President of Rue de Lorraine, a chain of fast-food restaurants in central France, just
returned from a reunion of his INSEAD graduating class. During the day of activities in the Riviera, he talked
with several o ...Advancedcostaccounting 140417192903-phpapp02
Advancedcostaccounting 140417192903-phpapp02Anqur Rauth
油
Standard costing refers to expected costs under anticipated conditions and allows for comparison of standard versus actual costs. Differences between standard and actual costs are referred to as variances, which should be investigated if significant. Standard cost is the cost of a single unit while budgeted cost is the total cost of budgeted units. Target costing determines the allowable cost to earn a required profit, while kaizen costing continually reduces costs after design and production. Cost variances measure differences between planned and actual costs. Material, labor, and variable overhead variances compare standard and actual costs for these items.Business Statistics 2nd Edition Sharpe Solutions Manual
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This video discusses how Southwest Airlines manages variation in its flight schedules. It identifies many potential sources of variation outside the airline's control, such as late arriving aircraft, weather, passenger loads, and ground crew efficiency. Understanding these sources of variation is important for Southwest to assure high quality service and meet customer needs. While some variation cannot be avoided, the video shows how Southwest may intentionally introduce slight variations, like early departures, to take advantage of opportunities. Overall, the video illustrates that Southwest must quantify and predict variation to effectively manage its flight operations.Running head BEN AND JERRY 1BEN AND JE.docx
Running head BEN AND JERRY 1BEN AND JE.docxtoddr4
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Running head: BEN AND JERRY 1
BEN AND JERRY 4
Ben and Jerry
Students Name
Institutional Affiliation
There are different types of customer variability that can be identified from the flow diagram. Capability variability is one of them. This suggests that every consumer of the product has the chance to suggest their ideas to the manufacturer. Their skills and motivation are included as part of the equation. For instance, even with a large number of customers contacting the manufacturer with the same suggestion, the manner in which they will do it will always be different and unpredictable. For instance, some may claim it is too plain while others say it is not sweet while what both customers want is more flavor added to that brand of ice cream. Also, the demands of the customers often require a professional opinion to back them up. The other type of customer variability is the effort variability. The effort that the customers are willing to put in in handling the product or service varies depending on the customer. While others may properly dispose the left overs, there are those that may feel like it is not up to them to make efforts to dispose it. As a result, they leave the left overs in the open.
The type of process variability identified are controlled and uncontrolled variation. Controlled variation exhibits a stable pattern and it shows a random fluctuation in a given level. On the other hand, uncontrolled variation is not stable and it fluctuates irregularly. Both types of process variability apply in the flow diagram (Bourgeois III & Yu, 2017).
For the company to properly manage the variability, they should increase the quality of communication with the customers of the products. This gives more allowance for suggestions, to help manage capability variability. Also, managing effort variability can be achieved by small ways of communication such as information on the containers about proper methods of disposal. On process variability, Ben and Jerry ice cream brand can increase the quality of product or introduce a new variety, which would manage the situation. Improving the quality of the product and the nature of communication between the company and its customers would have the most impact on customers perception of quality and related variability.
Types of errors that are likely to occur in these steps of process include miscommunication and the risk of resistance to change. Miscommunication may cause the customers to have the wrong ideas about the reasons for change. For instance, if Ben and Jerry decide to increase their variety of products the customers may not immediately get the message. If the packaging is different they may consider it a different product. Similarly, resistance to change may occur if they decide to change or improve the flavor of the products. Some consumers may not embrace this well. The errors can be eliminated by p.How to Configure Subcontracting in Odoo 18 Manufacturing
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A review of the two main types of variation that can affect a process common cause variation and special cause variation.Analysis of variance
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This document discusses variance analysis. It defines variance as the arithmetic mean of the squares of the deviations from the mean. Smaller variance means values are closer to the mean, while larger variance means values are more spread out. It provides steps to calculate variance and describes one-way and two-way analysis of variance. It then provides an example analyzing the variance in profits and net costs over 5 years at Pfizer Pakistan. The conclusion is that variance helps compare means and the example shows Pfizer's financial position is stable with little variation over the time period analyzed.aaa aaa variance analysis.ppt
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Variance analysis is used to identify and explain differences between planned and actual outcomes. A variance is the difference between an actual amount and a budgeted or planned amount. Variances can be categorized based on the type of cost (e.g. material, labor), whether they are controllable or uncontrollable, if they are favorable or unfavorable, their nature as basic or sub-variances, and more. Variance analysis helps management identify reasons for deviations and take corrective actions to improve performance and control costs.Analysis of variance
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Variation exists in all stages of a product's life cycle from design to manufacturing to service due to various material, method, environmental, people and machine-related factors. Controlling process variation is key to achieving high quality. Variation is present in all processes and causes differences between products as well as dissatisfaction when specifications and requirements are not met. Variation has inherent causes that are always present and special causes that occur sporadically due to specific circumstances. Controlling variation involves identifying and minimizing special causes while planning for inherent causes.Vc
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The document discusses two approaches for using value chain analysis (VCA) to gain competitive advantage: cost advantage or differentiation advantage. For cost advantage, the five steps are: 1) identify activities, 2) establish costs, 3) identify cost drivers, 4) identify links between activities, and 5) identify cost reduction opportunities. For differentiation advantage, the three steps are: 1) identify customer value activities, 2) evaluate differentiation strategies, and 3) identify sustainable differentiation. The document provides details on each step for the cost advantage approach.Variance Analysis
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The document discusses variance analysis and provides examples of how it can be used. Variance analysis breaks down changes in financial metrics like revenue, costs, and profits into their contributing factors. This helps identify drivers of performance and areas for improvement. Examples show how variances can be calculated for changes in revenue due to shifts in volume versus price. The analysis can also be extended to multiple variables and customer segments.Variance
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This Presentation explains about variance, types of variance and importance of variance in an organizationStandard Costing
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Definition of standard cost, target costing, kaizen costing and some mathematical problem with requirements.LearningObjectivesAfter studying Chapter 8, you will be a.docx
LearningObjectivesAfter studying Chapter 8, you will be a.docxcroysierkathey
油
LearningObjectives
After studying Chapter 8, you will be able to:
Explain the signi鐃icance of pro鐃it analysis for an organization.
Describe the major characteristics and conditions of a standard cost system.
Understand the information contained in a standard cost sheet.
Compute materials price and usage variances, and identify potential causes of such variances.
Compute labor rate and ef鐃iciency variances, and identify potential causes of such variances.
Explain the major considerations that are the basis of standard costs for overhead and compute
budget variances and capacity variances for overhead.
Explain why the capacity variance is related only to 鐃ixed overhead costs.
Understand issues relating to variance investigation and disposal of variances.
8 Cost Control Through Standard Costs
nd3000/iStock/Thinkstock
Explain how standard costs can be used in various different settings.
Describe ethical considerations relating to standards and variances.
WhereDoIStartWithStandardCosts?
Jean-Claude Recca, President of Rue de Lorraine, a chain of fast-food restaurants in central France, just
returned from a reunion of his INSEAD graduating class. During the day of activities in the Riviera, he talked
with several of his classmates who have become extremely successful in various businesses. One of those
classmates suggested to Jean-Claude that adoption of a standard cost system eliminated most of her 鐃irms
unacceptable scrap and spoilage, caused an examination of nonvalue-added activities, and substantially
reduced several inef鐃icient operations.
Jean-Claude did not know whether his restaurant chain would really bene鐃it from a standard cost system. He
wondered: If he makes the change, which costs should be put on standards? How does he set up standards?
When do variances mean something? Isnt a standard cost system expensive to use? Isnt it a pain in the
derriere? Wouldnt a tight budget do the same thing?
These questions were more than Jean-Claude could consider. He decided to bounce the idea of standard
costs off his controller.
In measuring success in any undertaking, a comparison is usually made between actual performance and expected
performance. Any difference is a variance. A manager is then left with the responsibility to explain the what, why,
and how of the variance. In doing so, the manager must understand the in鐃luence of key variables on the actual
results, focus on areas that deserve more detailed investigation, and determine changes that must be made in future
planning and control. This chapter introduces the concept of pro鐃it analysis and then concentrates on variances
associated with a standard cost system for direct materials, direct labor, and factory overhead.
8.1Pro鐃itAnalysis
Pro鐃it is an overall measure of how well an organization is doing. A pro鐃it variance then is the difference between
the actual net income and the planned net income for the same period. The causes of such a variance are related to
...Required ResourceTextSchneider, A. (2017).油Managerial Accounti.docx
Required ResourceTextSchneider, A. (2017).油Managerial Accounti.docxaudeleypearl
油
Required Resource
Text
Schneider, A. (2017).油Managerial Accounting: Decision making for the service and manufacturing sectors油(2nd ed.) [Electronic version]. Retrieved from https://content.ashford.edu/
揃 Chapter 5: Joint Cost Allocation and Variable Costing
揃 Chapter 8: Cost Control Through Standard Costs
Recommended Resource
Multimedia
Crosson, S. (2007).油PVA ABC JIT 4 ABC example油(Links to an external site.)油[Video File]. Retrieved from http://www.youtube.com/watch?v=eyH4l3VvOCU
Discussion 1 油Allocating Joint Costs
Describe the three methods used to allocate joint costs. What are the advantages/disadvantages of each allocation method? Which method would you recommend? Why? Support your position with evidence from the text or external sources. Your initial post should be 200-250 words.
Guided Response:油Review several of your classmates postings.油 Respond to at least two of your classmates by asking a question to challenge their recommended allocation method.油油 Support your question and/or comments with evidence from the text or external sources.
Discussion 2 Variable/Absorption Costing
As you read in Chapter 8, there are arguments (for and against) variable costing and absorption costing. Select one of these costing methods and explore the various arguments.油 Determine whether you are for or against this selected method. Provide evidence from the text to support your position. Your initial post should be 200-250 words.
Guided Response:油Review several of your classmates postings. Respond to at least two of your classmates who explored a different costing method than your own by stating whether you agree or disagree with their position. Be sure to include cited support/examples to clarify your point of view.
LearningObjectives
After studying Chapter 8, you will be able to:
Explain the signi鐃icance of pro鐃it analysis for an organization.
Describe the major characteristics and conditions of a standard cost system.
Understand the information contained in a standard cost sheet.
Compute materials price and usage variances, and identify potential causes of such variances.
Compute labor rate and ef鐃iciency variances, and identify potential causes of such variances.
Explain the major considerations that are the basis of standard costs for overhead and compute
budget variances and capacity variances for overhead.
Explain why the capacity variance is related only to 鐃ixed overhead costs.
Understand issues relating to variance investigation and disposal of variances.
8 Cost Control Through Standard Costs
nd3000/iStock/Thinkstock
Explain how standard costs can be used in various different settings.
Describe ethical considerations relating to standards and variances.
WhereDoIStartWithStandardCosts?
Jean-Claude Recca, President of Rue de Lorraine, a chain of fast-food restaurants in central France, just
returned from a reunion of his INSEAD graduating class. During the day of activities in the Riviera, he talked
with several o ...Advancedcostaccounting 140417192903-phpapp02
Advancedcostaccounting 140417192903-phpapp02Anqur Rauth
油
Standard costing refers to expected costs under anticipated conditions and allows for comparison of standard versus actual costs. Differences between standard and actual costs are referred to as variances, which should be investigated if significant. Standard cost is the cost of a single unit while budgeted cost is the total cost of budgeted units. Target costing determines the allowable cost to earn a required profit, while kaizen costing continually reduces costs after design and production. Cost variances measure differences between planned and actual costs. Material, labor, and variable overhead variances compare standard and actual costs for these items.Business Statistics 2nd Edition Sharpe Solutions Manual
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油
This video discusses how Southwest Airlines manages variation in its flight schedules. It identifies many potential sources of variation outside the airline's control, such as late arriving aircraft, weather, passenger loads, and ground crew efficiency. Understanding these sources of variation is important for Southwest to assure high quality service and meet customer needs. While some variation cannot be avoided, the video shows how Southwest may intentionally introduce slight variations, like early departures, to take advantage of opportunities. Overall, the video illustrates that Southwest must quantify and predict variation to effectively manage its flight operations.Running head BEN AND JERRY 1BEN AND JE.docx
Running head BEN AND JERRY 1BEN AND JE.docxtoddr4
油
Running head: BEN AND JERRY 1
BEN AND JERRY 4
Ben and Jerry
Students Name
Institutional Affiliation
There are different types of customer variability that can be identified from the flow diagram. Capability variability is one of them. This suggests that every consumer of the product has the chance to suggest their ideas to the manufacturer. Their skills and motivation are included as part of the equation. For instance, even with a large number of customers contacting the manufacturer with the same suggestion, the manner in which they will do it will always be different and unpredictable. For instance, some may claim it is too plain while others say it is not sweet while what both customers want is more flavor added to that brand of ice cream. Also, the demands of the customers often require a professional opinion to back them up. The other type of customer variability is the effort variability. The effort that the customers are willing to put in in handling the product or service varies depending on the customer. While others may properly dispose the left overs, there are those that may feel like it is not up to them to make efforts to dispose it. As a result, they leave the left overs in the open.
The type of process variability identified are controlled and uncontrolled variation. Controlled variation exhibits a stable pattern and it shows a random fluctuation in a given level. On the other hand, uncontrolled variation is not stable and it fluctuates irregularly. Both types of process variability apply in the flow diagram (Bourgeois III & Yu, 2017).
For the company to properly manage the variability, they should increase the quality of communication with the customers of the products. This gives more allowance for suggestions, to help manage capability variability. Also, managing effort variability can be achieved by small ways of communication such as information on the containers about proper methods of disposal. On process variability, Ben and Jerry ice cream brand can increase the quality of product or introduce a new variety, which would manage the situation. Improving the quality of the product and the nature of communication between the company and its customers would have the most impact on customers perception of quality and related variability.
Types of errors that are likely to occur in these steps of process include miscommunication and the risk of resistance to change. Miscommunication may cause the customers to have the wrong ideas about the reasons for change. For instance, if Ben and Jerry decide to increase their variety of products the customers may not immediately get the message. If the packaging is different they may consider it a different product. Similarly, resistance to change may occur if they decide to change or improve the flavor of the products. Some consumers may not embrace this well. The errors can be eliminated by p.Recently uploaded (20)
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5.Acetylation
6.Methylation
7.Sulfate conjugation
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10.Fatty Acid and Cholesterol Conjugation
Drug design is the process of creating new drugs by using knowledge of a biological target.
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Toxic Effects of Drug Metabolism
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5.Diazepam
6.Salicylate
7.Halothane (Anesthetic)
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9.Clozapine(Antipsychotic)
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M.A. Sem - 2 | Presentation
Presentation Season - 2
Paper - 110A: History of English Literature From 1900 to 2000
Submitted Date: April 1, 2025
Paper Name: History of English Literature From 1900 to 2000
Topic: Shadows and Light: Exploring Expressionism in The Cabinet of Dr.油Caligari and Nosferatu: A Symphony of Horror
[Please copy the link and paste it into any web browser to access the content.]
Video Link: https://youtu.be/pWjHqo6clT4
For a more in-depth discussion of this presentation, please visit the full blog post at the following link:
Please visit this blog to explore additional presentations from this season:
Hashtags:
#GermanExpressionism #SilentHorror #Caligari #Nosferatu #Chiaroscuro #VisualStorytelling #FilmHistory #HorrorCinema #CinematicArt #ExpressionistAesthetics
Keyword Tags:
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Boston creamery final
- 1. Boston Creamery Case StudyOn variance for Profit planning and control systems
- 2. Participants Neeta Pai B018KishoriSawant B038KavitaShetty B027AlpanaPawar B039Vishal Agarwal B001Karan Mehta B015
- 3. Boston Creamery Case StudyCase deals with design and use of formal profit planning and control systems. It was originally set in an ice cream company in 1973, a few years before the advent of Designer Ice cream.Case Study revolves around four characters: Jim Peterson President Frank Roberts- Vice President for Sales and Marketing John Parker Vice President for Marketing and Operations John Vance (CPA)- Controller
- 4. Boston Creamery Case StudyBoston Creamery is an Ice cream Company which manufactures and distributes ice cream to wholesalers and retailers.A new Financial Planning and control system has been installed to compare budgeted results against actual results.The tool is used to highlight things that needed corrective actions or commend things that resulted in a favourable overall variance.
- 5. What is Variance油Comparison between actual and budgeted performance.Variance can be Favorable or unfavorable.It helps to trace the origin and causes of unfavorable variances.Success of variance analysis depends on how quickly and effectively the corrective actions can be taken and analyzed.Calculation of variances is not an end in itself but means to the end.
- 6. Act -1Jim Robertson- PresidentFrank Roberts- Vice President for Sales and Marketing
- 7. Draft submitted by Marketing VP
- 8. Act -2Jim Peterson PresidentJohn Parker Vice President for Marketing and Operations
- 9. Draft submitted by Operations VPMarket Growth = STD Margin * (Budgeted Industrial Volume - Actual Industrial Volume ) * Market share.Market Growth = 0.4539 * (11440000-12180000) * 0.5 = 167600 (F)Market Share = STD Margin*(Budgeted Volume in liters -Actual Volume in liters) Actual Growth in Market Share = 0.4539 * (5720000 - 5968000 ) = 112567 Total Manufacturing cost = Budgeted Manu. Cost - Actual Manu. Cost = (99,000)Manufacturing cost deducting cost incurred by wrong forecasting = 99,000 80,700= 18,300Proposed Growth in Market Share = 167600 Variance = 167600 - 112567 = 55300 approx
- 10. Product Mix
- 11. Act-3Jim Peterson PresidentFrank Roberts- Vice President for Sales and MarketingJohn Parker Vice President for Marketing and OperationsJohn Vance (CPA)- Controller
- 12. Variance Analysis as per John Vance
- 13. Manufacturing Cost of Goods Sold
- 14. Recommendations
- 15. THANK YOU