• Home
  • Blog
  • In 8 pages, help me complete the following

In 8 pages, help me complete the following

0 comments

Comprehensive Project Costing

Part 1:
Restaurants offer a variety of menu items which have different sizes,
ingredients, packaging, and demand. In addition, made-to-order
restaurants go one step further and may have different renditions of the
same menu items based on how a customer orders them. Take for example,
Chipotle, for the same price, steak tacos could be “crispy” or “soft”,
may have white, brown, or no rice, may or may not contain one of three
types of salsa, could have cheese or sour cream or neither, and may or
may not have lettuce, black or pinto beans, or other vegetables.
Combinations for that one menu item are virtually endless!

Profit
margins in the restaurant industry are small, and operating costs are
high. Good product costing is essential for survival in the business.
This project option will allow you to apply your knowledge of product
costing to the restaurant industry.

  1. Select a nationally recognized fast casual restaurant chain that offers made-to-order menu items, except a restaurant primarily engaged in making pizza. Some examples would be Chipotle Mexican Grill, Five Guys, Noodles & Co., Panera Bread, and Dunkin Donuts.
    1. For
      the restaurant chain you have selected, you will need to research and
      locate company information, menus, and financial information to assist
      you with the requirements of this project.
    2. Not every chain will
      have the same financial information available, so it may be necessary to
      generate your own “fictitious” data in order to complete the required
      tasks. If you do need to create data, be clear in your
      computations which data is taken from publicly available information
      (provide the sources) and which data has been generated by you.
  2. Choose
    3 menu items from the menu of the restaurant. Familiarize yourself with
    the products including the ingredients, processing method, general
    selling price in your area, packaging requirements, and accessories
    (straw, sweetener, fork/knife, condiments, etc.). Submit your selected
    restaurant chain to your instructor and write 1-2 paragraphs on your
    rationalization for selection, noting which portfolio option you
    selected, in Microsoft Word. In addition, create a chart in Microsoft
    Word with the 3 menu items that you have chosen and populate it with the
    data you have researched on each of those items regarding ingredients,
    variance in preparation, price point, packaging, accessories, and any
    other relevant information you feel is helpful.

Part 2:

  1. From
    the cost information you were able to find or generated on your own,
    provide responses in Microsoft Excel to the following questions.
    Reference your calculations to show tracing where numbers come from.
    (For assistance with Microsoft Excel, please refer to Lynda.com for
    tutorials.)

    1. Compute the cost of each product under the simple/traditional costing method. For period costs, use direct labor hours.
    2. Compute the net operating profit margin of each product using the simple/traditional costing method.
    3. Compute the total overhead and period cost allocation under activity-based costing (ABC) assumptions for each product.
    4. Compute the per unit ABC cost of each product.
    5. Compute the net profit margin of each product using the ABC costing method.
    6. Compare
      the net profit margin of the products under the simple/traditional cost
      assignment and the ABC assignment for each product. Evaluate the
      difference.
  2. In a Microsoft Word document, write an
    accompanying memo explaining to the CEO what the costing methods are,
    the differences between the methods, and which method seems to make
    sense in this scenario. Also include the pros and cons of the method you
    are recommending, and why you feel the pros outweigh the cons.

Your paper should meet the following requirements:

  • Minimally 7-10 pages in length (not including the title page and the reference page).
  • Assignment should follow APA guidelines with respect to use of subheadings, 1” margins, and double spacing.
  • References
    should include your textbook plus 2 additional credible academic
    references. All sources used, including your textbook must be
    referenced; paraphrased and quoted material must have accompanying
    citations and cited per APA guidelines.
  • Use of CSU Global Library is necessarry

About the Author

Follow me


{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}