Managerial Accounting

Managerial Accounting
You will visit a fast food facility and answer the following questions, numbering each answer. You should not repeat the questions in your paper. The paper must be turned in by THURSDAY, NOVEMBER 29. No late papers will be accepted.

1. Name of facility visited
Address of company
Website address of company

2. What product did you observe being produced?

3. Describe the following for the product you observed.
a. Direct materials used. List ALL components; to qualify, your product must have at least 6 direct materials
b. Direct labor used
c. Manufacturing overhead components (At least 6 must be named)

4. Describe the manufacturing process you observed. You must be very specific and detailed in your description. You might want to construct a flow chart for this step.

5. Cost your product on a per item basis. You must compute all the direct materials amounts using grocery store costs. Please list the name and town of the grocery store you used as your resource. You must list each item, the brand name, and how much was used with any necessary supporting computations. For example: Wonder Bread; $3/loaf with 20 slices; 2 slices = $.30 Use $10 per hour for direct labor. Use $.25 (25 cents) as the total representing ALL overhead costs.

6. Compute gross profit for one item of your product.

7. What aspect of the process impressed you most and WHY?

8. Give one suggestion on how to reduce PROCESSING costs (not material costs) for your product.


You will conduct a limited financial analysis for your company.

1. Go to your company’s website and print out the most recent income statement, balance sheet and statement of cash flows. You will attach these to your submission.

2. Compute the following ratios for your company for the two most recent years. You must show computations and cross-reference the numbers you are using.
a. Current ratio
b. Profit margin
c. Asset turnover
d. Return on assets
e. Return on common stockholders’ equity
f. Debt to total assets

3. Using a periodical database from the COD library, find two articles about your company. Print the articles out and highlight the main points of the story. Attach these to your submission.

4. In your opinion, what makes your company successful (or not!)? You must incorporate comments from your ratio analysis and article review, but also include your own thoughts.


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