Managerial Accounting Domino’s Pizza budget
Managerial Accounting
Domino’s Pizza budget
Domino’s Pizza LLC (DPZ) operates pizza delivery and carry-out restaurants. The annual report describes its business as follows: We offer a focused menu of high-quality, value-priced pizza with three types of crust (Hand-Tossed, Thin Crust, and Deep Dish), along with buffalo wings, bread sticks, cheesy bread, CinnaStix®, and Coca-Cola® products. Our hand-tossed pizza is made from fresh dough produced in our regional distribution centers. We prepare every pizza using real cheese, pizza sauce made from fresh tomatoes, and a choice of high-quality meat and vegetable toppings in generous portions. Our focused menu and use of premium ingredients enable us to consistently and efficiently produce the highest-quality pizza.
Over the 41 years since our founding, we have developed a simple, cost-efficient model. We offer a limited menu, our stores are designed for delivery and carry-out, and we do not generally offer dine-in service. As a result, our stores require relatively small, lower-rent locations and limited capital expenditures.
How would a master budget support planning, directing, and controlling for Domino’s? Please support your response with references.
DQ2 Variance
You started your own construction business and need to determine the cost of materials used to build one house, and how many materials you will need to do so.
Where would you begin to determine the standard price and quantity needs to build one house?
What would produce a difference between the standard cost to build a house and the actual cost? What would cause a favorable outcome? What would cause an unfavorable outcome?
What action might your company take if you had an unfavorable total direct materials cost variance?
Please support your responses with references.
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