How does the drop in the price of eggs impact Kellogg's® variances for its Eggo® Homestyle waffles? Original blog posting (October 17, 2017)

Egg prices have fallen since 2015 Avian flu in 2015 caused a shortage of eggs Since then, however, egg producers have built their flocks back up Egg prices have dropped drastically Eggs are used in Kellogg's® Eggo® waffles

Question 1 Which of the Eggo® waffle variances would be impacted by the drop in the price of eggs?

Question 2 Would the drop in the price of eggs cause a favorable or unfavorable variance for Kellogg’s?

Question 3 What is Kellogg’s likely to do to its standard(s) based on the current price of eggs? Which standard(s) would be impacted?

Question Recap Which of the Eggo® waffle variances would be impacted by the drop in the price of eggs? Would the drop in the price of eggs cause a favorable or unfavorable variance for Kellogg’s? What is Kellogg’s likely to do to its standard(s) based on the current price of eggs? Which standard(s) would be impacted?

For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at http://accountingintheheadlines.com/ Questions or comments? Contact Dr. Wendy Tietz at wtietz@kent.edu