Food Services (Coursework Sample)

Food Services
Student’s Name
Institution
Chapter 17
Question A
A budget is a financial planning tool that gives both an overview and detailed information of how an entity will generate and use its resources in the pursuit of achieving certain set goals. A budget entails the value of assets, liabilities, cost of expenses and expected revenues. It may also entail other strategic financial plans of the organization. A fixed or static budget is one that the estimates do not change with the level of activity of the organization while a flexible budget will change with the level of business activity of the entity. For example, in a flexible budget, if the sales and revenues increase, expenses will also increase while in a fixed budget the expenses will remain constant. A zero-based budget is one which its budgeting activity starts afresh irrespective of the previous fiscal period. The expected revenues and costs of the current period are analyzed and the new budget drawn up i.e. the new budget does not build up on the previous one.
Question B
Point of Sale systems (POS) offer an effective inventory management unlike a cash register where the level of inventory has to be monitored manually. Cash registers require accountants to maintain bulky financial records and receipts while the POS systems have in-built financial report templates which accountants can use. Past transactions can also be easily traced using a POS system while a cash register would require combing through piles of paper to get the required transaction. POS systems are also fast compared to cash registers therefore improving the overall effectiveness and efficiency of the organization
Question C
Food cost = (2100/7000)*100%
Answer=30%
The food cost is important because it shows the level of profit generated by every revenue-generating department. It also provides an effective system of pricing dishes and gives an in-depth analysis of income and expenditure.
Question D
The break-even point is the point of volume of sales where the business does not generate any profit or incur any losses. It is an important figure because it shows the level above which the business will start to generate profits. If the break-even point is very high the food service business should consider reducing its cost.
Question E
ParticularsAmount
Sales $32313
Net Cost of Foods Sold $11098
Labor Cost $12988
Other expense $ 4012
(28098)
Profit before taxation$4215
Taxes(1204)
Net Profit$3011
Profit of operation is $3011
Percentage of labor cost based on net sales= $12988 / $32313*100%
Answer is 40.19%
Chapter 18
Question 1
Marketing revolves around the activities of planning, implementing and evaluating. The marketing activities to be carried are first planned and budgeted for, they are then implemented and finally evaluated to see if the objectives have been achieved. If the objectives have not been achieved, the process begins all...