Instructions

Let’s start the course with the known local Burbank/Glendale bakery, Porto’s.  Why does one business is more successful than the others?  How can the concept of managerial accounting be applying to Porto’s?   Let’s unpuzzle the secret sauce of Porto’s by viewing the recent trends of  managerial accounting being applied to Pizza Hut.

1. Visit Porto’s for your favorite baked goods (or any of your favorite bakery, or just pretend via  e-visit to the Youtube clips. LOL).
• What is its unit price?  Let’s think of a batch of 100 baked goods…what is its total price?
• Speculate how much is the cost to bake (AND sell) that 1 batch (100 units)? Calculate its related gross margin. — Just make an educated guess on the cost, don’t overthink. Name 5 cost components — name both the obvious (example, flour) and the nuance  (example, food coloring)?
• Classify those 5 cost items in various ways as discussed in the book.  Copy a table below and use as a template for your analysis.   The below VDO clip shows you various ways to classify cost.  We will just focus on some of these.
2. Now, a big picture.   Observe the bakery and let’s pry the challenges that Porto’s must overcome to be successful.  (Don’t just say selling delicious food at good price).   Say like a manager taking a managerial accountant with insightful information…(say, How to keep the cost of production down by controlling the amount of waste (stale baked goods).  Is it just about the bottom line?   Look through the book on various topics to get keywords and ideas).  
• Name the challenge that is vital to the success of the bakery business.
• If you part of Porto’s management, how will you address that potential risk in planning, controlling, and decision-making phase of running a business operations?
• More VDO clip about Portos:
3. Watch & relate concepts on the enclosed video clip and pick one managerial accounting trend that was mentioned in the video.  
• Discuss that trend as defined in the text.  You may have to peruse through the future chapter.
• How does that trend being implemented at Pizza Hut?
• Speculate whether that trend is being used at Porto’s.  What evidence at Porto’s have you observed that support your observation?  Do you think Porto is successful at that initiative?

Closing thoughts: 

So what will we learn in this class?  We are going to look at the cost (beginning in this module), the price, the planning of business operations, and decision-making consideration (say, should we open a new location?), and even the non-financial factors (that will indirectly impact the bottom line).

AND remember to provide at least 2 insightful peer responses to others by Wednesday.

Admin: align yourself and make connection (for your future “group” discussion)

Ongoing forward we will discuss in small groups (rather than having a big forum like this).   See your randomly assigned group by clicking People > Project Groups (at left pane).   We may have group activities for projects later.   Note we sometimes want to work with your friends, so know you are welcome to “regroup” by dragging your name and place in your desired group until the team limit is reached. 

• I won’t change the group limit, and you may not approach other members to move out of the team simply because you want to swap space.  (I think it’s not polite).
• I won’t remove others at your request (I may regroup people for other reasons such as consolidating group members to even out the headcount).
• The group will become permanent in a week.  No movements afterward.  If it turns out you dislike working with someone, well, tough.  I can’t choose who will be my students (or my coworkers) either.
• My only caveat is I don’t want ones with the same last name be in the same group.  No sibling/spouse in the same group.

If you are smart, you might want to put your best foot forward in this discussion and gravitate to others with common interests (peruse through 00D self-introduction discussion) and share good insights.  There is a benefit of approaching & planning with your classmates early since the group space is limited — so email others and see if you can arrange the group, ideally, by the end of this week!  Next week is our first group discussion week.

Discussion Directions

Original post by Monday evening at 11:59 pm Pacific Time.  Users must post before seeing replies, therefore, you may not do a blank post just to peek on how others responded. 
Respond to at least 2 classmates by Wednesday evening at 11:59 pm Pacific Time

1.

* One thing I like in Porto’s Bakery is its Chicken Empanada. Its unit price is $1.08, with