Pauline Cooper is a registered dietitian and the foodservice director at Memorial Hospital. Increasingly, the hospital’s marketing efforts have emphasized its skill in treating diabetic patients. As a result, the number of diabetic meals served by Pauline’s staff has been increasing. As a professional member of the hospital’s management team, Pauline has been asked to report on how the hospital’s diabetic treatment marketing efforts have affected her area.1. How important is it that Pauline have historical records of the type (i.e., vegetarian, low-sodium, gluten-free, and the like) of meals served by her staff and not merely the number of meals served? Why?2. Assume that Pauline’s per-meal cost has been increasing because diabetic meals are more expensive to produce than regular meals. Could Pauline use sales histories to estimate the financial impact of serving additional diabetic meals in the future? How?3. What are other reasons that managers in a foodservice operation might keep detailed records of meal types served, as well as the total number of meals served?

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Asked Jan 18, 2020
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Pauline Cooper is a registered dietitian and the foodservice director at Memorial Hospital. Increasingly, the hospital’s marketing efforts have emphasized its skill in treating diabetic patients. As a result, the number of diabetic meals served by Pauline’s staff has been increasing. As a professional member of the hospital’s management team, Pauline has been asked to report on how the hospital’s diabetic treatment marketing efforts have affected her area.
1. How important is it that Pauline have historical records of the type (i.e., vegetarian, low-sodium, gluten-free, and the like) of meals served by her staff and not merely the number of meals served? Why?
2. Assume that Pauline’s per-meal cost has been increasing because diabetic meals are more expensive to produce than regular meals. Could Pauline use sales histories to estimate the financial impact of serving additional diabetic meals in the future? How?
3. What are other reasons that managers in a foodservice operation might keep detailed records of meal types served, as well as the total number of meals served?

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Expert Answer

Step 1

While accounting for revenues when different products are offered by the business, the businesses usually maintgain a record of the quantities and type of the product sold. 

Step 2

1 Since the business specialises in treatment of diabetic patients and food served to patients is the key element in the revenue and cost cycle. Also the cost of the different type of food is different. Thus, in order to maintain adequate accounting records which also helps in exercising adequate control on the functioning and costs of the business, it is important that the business maintains record of the quantity and type of food served.

Step 3

2. Using historical data for estimation of future results of the business is a common method employed by organisations. The past costs are adjusted by expected escalation in prices and applied to estima...

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