When Domino’s Pizza began operations in 1960, it had a “30 Minutes or It’s Free” campaign. In making that promise, the company set a standard time to prepare and deliver a pizza. In 1993, Domino’s completely removed that campaign. Discuss how setting such a standard might have been problematic for Domino’s. Can you think of any other organizations in which guaranteeing specific labor time standards might create problems?
Answer to relevant QuestionsDiscuss the following statement: Since standard costs are recorded in the inventory accounts in a standard cost system, actual costs are ignored.One of Sure-Bet Sherbet’s best-selling products is raspberry sherbet, which is manufactured in 10-gallon batches. Each batch requires six quarts of raspberries. The raspberries are sorted by hand before entering the ...In July 2013, Zinger Corp. purchased 20,000 gallons of Numerol for $ 61,000 to use in the production of product # 43MR7. During July, Zinger Corp. manufactured 3,900 units of product # 43MR7. The following information is ...ALOHA Corp., started in January 2007, manufactures Hawaiian muumuus. At that time, the following material and labor standards were developed: Material ........ 3.0 yards at $ 4 per yardLabor ......... 1.5 hours at $ 6 per ...Salina Sports Wear has designed a new athletic suit. The company plans to produce and sell 30,000 units of the new product in the coming year. Annual fixed costs are $600,000, and variable costs are 70 percent of selling ...
Post your question