Domino’s Pizza Inc. started in 1960, and throughout the years it has been known as one of the largest pizza delivering companies. It delivers around 1.5million pizzas in a year throughout the states and its franchises in other countries ("History - biz.dominos.com," 2018). In analyzing the methods used by Domino’s in accounting for inventory, an identification of assets, application of methods to determine costs, depreciation, resources, and investments is essential.
First, from the current form 10k, the company’s assets are valued at $836.8 million (Last10K.com, 2017). Some of its assets are property, plant, and equipment, and capitalized software valued at cost. This valuation of assets includes franchise operations that are estimated at their fair values of the assets and liabilities to acquire the assets. The company uses the straight-line method over the estimated useful lives of the related assets ("Domino's Pizza: total assets 2017 | Statistic," 2017). Notably, the company values its assets at cost, and the cost of repairs and maintenance is incurred.
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Other than the above, the value of inventories of the company is by use of the method known as ‘First In First Out.’ In this case, the inventories are valued at the net realizable value. The inventories include food, equipment, and supplies ("Domino's Pizza: total assets 2017 | Statistic," 2017). The main intangible asset for the company is the software which is valued at cost. In particular, this value includes the cost of the software purchase, internal development, and externally developed software.
Furthermore, Domino’s has short-term investments. The current assets of the company include short-term investments of mutual funds, account receivable from the sale and shipment of equipment, as well as a franchise fee and royalties. Each of these contributes to the overall worth and progress of the company.
References
Domino's Pizza: total assets 2017 | Statistic. (2017). Retrieved June 15, 2018, from https://www.statista.com/statistics/219486/total-assets-of-dominos-pizza/
History - biz.dominos.com. (2018). Retrieved June 15, 2018, from https://biz.dominos.com/web/public/about-dominos/history
Last10K.com. (2017). DOMINOS PIZZA INC (DPZ) 10K Annual Reports & 10Q SEC Filings. Retrieved from https://www.last10k.com/sec-filings/dpz
