Accounting Concepts

Accounting Concepts

Answer Questions to the Rosabella Concept 1-3 pgs.49

1. The abnormalities have to do with the menu percentages against profit and loss of using the standard cost method. Undesirable forecasted food cost percentages to actual cost standard can throw off how gross profit is incurred. Gross profit is the measure that needs to be accounted for. Take for example, the lowest percentages, which is mostly the seafood items, sell in season promote the items turn out a higher percentage which makes the gross profits rise.

2. The highest items by menu revenue are the cheese raviolis, chicken fettuccine alfrado, chicken marcela, lasagna and the spaghetti and meatballs. The lowest are the meat cannelloni, shrimp scampi, sea food alfredo, and chicken parmigiana.

3. Since the goal is to increase sales profits an increase to the gross profit percentage needs to be adjusted, with the key element of the sales mix is to divide food cost by total revenue. The mix with the lowest percentage results in the lowest gross profit, so the manager needs to sell more of the higher gross profit items, while making menu changes to appeal to marketing the lower gross profit items.

Answer Questions 2 and 3 on page 52

2. The payroll is not balanced out since the meeting rooms and the food and beverage departments are getting more business than room sales the budget should accommodate more toward these departments to meet the payroll demands. The payroll is not balanced out between being under budget and over budget from department to department.

3.If I were the general manager the first thing I would do would be to re run all reports to ensure the accuracy of the original report was correct in its statement, I would make sure that all accounting software was up to date and running the reports I need to make better business decisions, concerning the departures from the budget amounts. Then I would work on accommodating the budget to focus on where it was needed...