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

2. 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

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

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

5. 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?

6. 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?

7. For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at Questions or comments? Contact Dr. Wendy Tietz at