DQ

Subject: Managerial Accounting

Q1. Read the following paragraph and write a response. If posible give an example with a references.

Limitation of Fixed Budget Performance Report (FBPR)

Fixed budget performance reports compares fixed budget with the actual results and variances are calculated for sales, direct materials, direct labor, overheads, expenses (both selling as well as general and administrative), and income. In the process, favorable and unfavorable variances are identified. But this process shows that, when the actual sales are more the the initial anticipated sales, the report shows that more expenses and overheads have incurred in account for additional sales. And the resultant variances are marked unfavorable. So, from the above, it is clear that fixed budget though sales and income have increased, would report the additional costs as unfavorable. But this is not appropriate because more sales is the target of organization and more production costs would be incurred in the process. So, fixed budget fails to provide a good comparison when actual sales are different from predicted sales (Wild & Shaw, 2016).

Q 2. Read the following paragraph and write a response. If posible give an example with a references.

From the managerial point of view, Variable Costing provides a greater number of information, besides offering greater agility in order to assist managers in decision making. Thus, this costing method has greater information power, since it treats the separate fixed costs as expenses, and there is no need for apportionment. Although this method is not accepted by the tax authorities, nothing prevents the company from adopting it for management purposes (MARTINS, 2008).

Subject: Strategic Management

Q. Read the following paragraph and write a response. If posible give an example with a references.

Are Panera's resources and capabilities competitively valuable?

The company create value by using only fresh ingredients the primary products, the bread, made in store. It creates it's brand recognition around making customers feel a homey vibe of freshly made bread straight out of the oven (Panera Bread, 2019) 

The company also has good corporate social practice with being transparent about their ingredients (Wiener-Bronner, 2015). 

Do Panera's competitors obtain the same level of  the resources?

With some of the 

Is Panera's business model hard to copy?

Panera Bread belongs to type of restaurant categorized as fast casuals which is an amalgamation of eateries offering fast but healthy and fresh options instead of the traditional long shelf life of Mcdonald's (Dixon, 2017). Thus, the business model might not be hard to replicate but the ability to create a chain with consistent quality and a name recognition within a crowded field might be fairly difficult.