Professor Elam

Accounting & Investing Info for San Antonio A & M

recent posts

about

Category: Cost Managerial

  • A Practical Application of Managerial Accounting The Boarding House as Destination

    Labor Day Weekend August 31, 2014   I want to use this as an example of one of the uses of managerial accounting. Accountants are in demand as advisors. This business model described below solves many of the problems of a traditional restaurant. Here in San Antonio the San Francisco Steakhouse has gone to a…

  • Supply Chain Woes for the Apple 6

    Friday August 22, 2014 Suppliers are rushing to fill Apple's larger specified screen for the Apple 6. Apple plans a media event for early Sept to boost Christmas sales. Will all the screens arrive on time? Understanding process is part of seeing the big picture as a managerial accountant. Samsung's larger screens have clearly prmpted an…

  • A Tale of Two Companies

    Wednesday June 11, 2014 The fortunes of RAdio Shack RSH continue to sag.  The stock may go to $1 which would cause it to be de listed from the NYSE. RSH lacks a coherent strategy to take it forward in a day and age of dlwonloaded songs and personal iPods and Phones. I never thought…

  • Financial Analysis

    Tuesday June 3, 2014 Baker Avenue is a wealth management firm. The minimum investment is $500,000. Here is their latest update. Notice that it is a mix of both fundamental and technical analysis.  We are studying financial analysis in ACCT 3314. Intermediate accounting is a study of how financial statements are prepared.  We will take…

  • RAX Should Not Be Left off the Rack

    Monday May 19, 2014 RAX Should not be left off the Rack. What happens to a valuable company with an innovative business plan whose stock falls 60% in over a year? You become a take over target, that's what. Rackspace has gotten a lot of big companies interested in its cloud computing model. The fastest…

  • MCD Complicates Menu

    Thursday May 1 2014 MCD has too many menu items. This complication has slowed service and lowered the already too low opinion of management by franchise owners.  One of my examples in the cost course is the Permian Basin Hamburger Company. This is a Mom and Pop operation that as you can see is open during the noon…

  • Product Life Cycles

    Wed April 23, 2014 Apple is being criticized for not having another miracle product in its pipeline. After  iTunes iPod iPhone iPad what's enxt, well probably nothing, perhaps another version of iTV. One comment I read about Jobs miracle success was that he was fortunate. He was out of Apple while others failed at products for…

  • MCD Mimics CMG

    Wed April  23 2014 McDonald's is designing its kitchens to look more like Chipolte Mexican Grill. Managerial accounting is all about process improvement. This is an example of both speed and perception. Customers apparently like to see the food prepared. This is the case now that I think about it for Macaroni Grill which has an open…

  • Chipolte and SBUX Take Advantage of Price Elasticity

    Weekend April  19 2014 CHipolte Mexican Grill CMG plans to raise prices. The CFO says the customers do not notice the difference between $7 and  $7.75. But clearly that is a huge increase to CMG's bottom line.  It stuck me that SBUX is the same way. Coffee shops have been around for over one hundred years…

  • Meet the USS Zumwalt

    Monday April  14 2014 The Navy will launch its newest ship later this year, or so they say.   My recollection is that the last ship the Navy had built has combat survival problems.  But it was a bargain at $670 M compared to the Zumwalt at $7 B. Here is my take The origianl cost…