Managerial Accounting, Student Value Edition Plus NEW MyLab Accounting with Pearson eText -- Access Card Package (4th Edition)
4th Edition
ISBN: 9780133849332
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 4, Problem 4.51ACT
Value-Added versus Non-Value-Added at a Restaurant
Go to a fast-food restaurant (or think of the last time you were at a fast-food restaurant). Observe the steps involved in providing a meal to a customer. You will be watching for value-added steps and non-value-added steps. Answer the following questions.
Basic Discussion Questions
- 1. Describe the steps involved with delivering the meal to the customer that you can observe.
- 2. Describe the “behind-the-scenes” processes that are likely in the restaurant, such as cleaning, stocking, and cooking activities.
- 3. With your answers for Questions 1 and 2, list all of the possible activities, materials, and information that you think might be included on a value stream map for the restaurant. Include all of the steps you can think of (not necessarily only those you can observe).
- 4. Make a list of the eight wastes as denoted by the acronym DOWNTIME (Defects, Overproduction, Waiting, Not utilizing people to their full potential, Transportation, Inventory, Movement, and Excess processing). Next to each waste category, list at least one possible non-value-added activity that might or might not be in the processes in that restaurant.
- 5. Go back to the list of items for the potential value stream map. Circle potential areas for improvement and explain which wastes might be involved in those areas.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Restaurants often add and remove menu items. Visit a restaurant and identify a new food item. Make a list of costs that the restaurant must consider when deciding whether to add that new item. Also, make a list of nonfinancial factors that the restaurant must consider when adding that item.
A haute cuisine restaurant is opening down the street, and its owner asks you for advise on pricing. Should you suggest that the restaurant price an appetizer at $6.99 or $7, and why?
Hello there, can you please help to answer these couple of questions?
1. What are some product costs related to McDonald’s French fries?
2. What are some period costs related to the manufacture and sale of McDonald’s French fries?
Thanks
Chapter 4 Solutions
Managerial Accounting, Student Value Edition Plus NEW MyLab Accounting with Pearson eText -- Access Card Package (4th Edition)
Ch. 4 - Prob. 1QCCh. 4 - Prob. 2QCCh. 4 - Prob. 3QCCh. 4 - Prob. 4QCCh. 4 - Prob. 5QCCh. 4 - Prob. 6QCCh. 4 - Prob. 7QCCh. 4 - Prob. 8QCCh. 4 - Prob. 9QCCh. 4 - Prob. 10QC
Ch. 4 - Prob. 4.1SECh. 4 - S4-2 Use departmental overhead rates to allocate...Ch. 4 - S4-3 Compute departmental overhead rates (Learning...Ch. 4 - S4-4 Compute activity cost allocation rates...Ch. 4 - Prob. 4.5SECh. 4 - Prob. 4.6SECh. 4 - Prob. 4.7SECh. 4 - Prob. 4.8SECh. 4 - Prob. 4.9SECh. 4 - Prob. 4.10SECh. 4 - Prob. 4.11SECh. 4 - S4-15 Identifying waste activities in an office...Ch. 4 - Prob. 4.12SECh. 4 - Prob. 4.13SECh. 4 - Prob. 4.14SECh. 4 - Prob. 4.16SECh. 4 - Prob. 4.17AECh. 4 - Prob. 4.18AECh. 4 - Prob. 4.19AECh. 4 - Prob. 4.20AECh. 4 - Prob. 4.21AECh. 4 - Prob. 4.22AECh. 4 - Prob. 4.23AECh. 4 - Prob. 4.24AECh. 4 - Prob. 4.25AECh. 4 - Prob. 4.27AECh. 4 - Prob. 4.26AECh. 4 - Prob. 4.28BECh. 4 - Prob. 4.29BECh. 4 - Prob. 4.30BECh. 4 - Prob. 4.31BECh. 4 - Prob. 4.32BECh. 4 - Prob. 4.33BECh. 4 - Prob. 4.34BECh. 4 - Prob. 4.35BECh. 4 - Prob. 4.36BECh. 4 - Prob. 4.38BECh. 4 - Prob. 4.39APCh. 4 - Prob. 4.40APCh. 4 - Prob. 4.41APCh. 4 - P4-42A Using ABC in conjunction with quality...Ch. 4 - Prob. 4.43APCh. 4 - Prob. 4.44BPCh. 4 - Prob. 4.45BPCh. 4 - Prob. 4.46BPCh. 4 - Prob. 4.47BPCh. 4 - Prob. 4.48BPCh. 4 - Discussion Questions 1. Explain why departmental...Ch. 4 - ABC in Real Companies Choose a company in any of...Ch. 4 - Value-Added versus Non-Value-Added at a Restaurant...Ch. 4 - Ethics involved with ABC and hazardous waste costs...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Domino’s Pizza Specify what standard costing for a Domino's pizza shop would entail (you are welcome to use your favorite pizza emporium for this exercise). Where would you obtain the information for determining the cost standards? In what ways would the standards help in managing a pizza shop?arrow_forwardWhy Does It Matter? MACS CUSTOM CATERING, Eugene, Oregon Macs Custom Catering, an award-winning catering business located in Eugene, Oregon, specializes in providing only the best for you and your guest. Macs Custom Catering has been in business for over 30 years and is experienced in providing catering services at weddings, corporate events, and large sit-down events. It offers several signature buffet options, including Northwest Bounty, Hawaiian Luau, and Italian Fest. Imagine that you have been hired to set up the accounting system for a catering business such as Macs. What accounts would be included in the chart of accounts? As you list the accounts, identify the type of account. Is the account an asset, a liability, or owners equity?arrow_forwardThe top management of a fast-food hamburger chain is considering installing point-of-sale machines that will allow customers to pay for food with a credit card or debit card. Previously, the restaurant has accepted only cash.What information could the management accounting department supply to assist management with this decision?arrow_forward
- Could you please right up a business statement for a foodcatering business.arrow_forwardQ. Radhuni, a traditional bangla restaurant, incurs the following costs: a. Salaries of the food specialists who create new Biriyani for the restaurant chainb. Cost of “to-go” bags requested by customers who could not finish their meals in therestaurantRequired: Just Classify each of the cost items (a,b) as one of the business functions of the value chainarrow_forwardPrepare a bill of material for (a) a pair of eyeglasses and its case or (b) a fast-food sandwich (visit a local sandwich shop like Subway, McDonald’s, Blimpie, Quizno’s; perhaps a clerk or the manager will provide you with details on the quantity or weight of various ingredients—otherwise, estimate the quantities). Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward
- You are the purchasing officer of a fast-food restaurant that is selling hamburger in the city of Muscat. The fast food chain business operates 25 stores strategically located in the region. Due to the decline in demand caused by the epidemic, the company is proposing measures to cut cost. The manager asked you to look for cheaper source of raw materials (bread). The company always avail of trade and cash discount. You decided to call the suppliers and gathered the following data; Supplier A (Lulu Supermarket) – The supplier offers 15% trade discount. Supplier B (Carrefour Market) – The supplier offers chain discounts of 10/5/2. Supplier C (Danube Supermarket) – The supplier offers no trade discount but cash discount of 5/10, n/30. Supplier D (Panda Supermarket) – The supplier offers trade discount of 10%, the terms of payment are 2/10, n/30. If the company decides to buy OMR 1,500 worth of bread from Supplier A (Lulu Supermarket), what is the amount of trade discount? What…arrow_forwardYou are the purchasing officer of a fast-food restaurant that is selling hamburger in the city of Muscat. The fast food chain business operates 25 stores strategically located in the region. Due to the decline in demand caused by the epidemic, the company is proposing measures to cut cost. The manager asked you to look for cheaper source of raw materials (bread). The company always avail of trade and cash discount. You decided to call the suppliers and gathered the following data; Supplier A (Lulu Supermarket) – The supplier offers 15% trade discount. Supplier B (Carrefour Market) – The supplier offers chain discounts of 10/5/2. Supplier C (Danube Supermarket) – The supplier offers no trade discount but cash discount of 5/10, n/30. Supplier D (Panda Supermarket) – The supplier offers trade discount of 10%, the terms of payment are 2/10, n/30. If the company decides to buy OMR 1,500 worth of bread from Supplier D (Panda Supermarket), what is…arrow_forwardFrank Pepe’s Restaurant and Pie Shop needs help defining the costs for his business. Frank also wants to know which costs are relevant or irrelevant to his decision making. Identify each cost as relevant or irrelevant. Then identify the type of cost (sunk, fixed, variable, or opportunity). Cost Relevant or irrelevant sunk, fixed, variable, or opportunity Rent baker wages franks culinary school tuition Berries for pies paiting dining area last year franks decision not to attend graduate schoolarrow_forward
- What is the best strategy for a RDN to use to benchmark financial performance, both internally and externally, in child nutrition and other like-minded, non-profit programs? Group of answer choices Comparing average monthly costs to local restaurants Determining total meal costs based on total meal equivalents Standardizing all recipes Implementing a food safety program based on HACCP principlesarrow_forwardRelevant costs, contribution margin, product emphasis. The Beach Comber is a take-out food store at a popular beach resort. Sara Miller, owner of the Beach Comber, is deciding how much refrigerator space to devote to four different drinks. Pertinent data on these four drinks are as follows:arrow_forwardWhy do fine dining establishments must have very high markups over the cost of their foods? Is it possible to be low-priced fine dining establishment?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
What is Business Analysis?; Author: WolvesAndFinance;https://www.youtube.com/watch?v=gG2WpW3sr6k;License: Standard Youtube License