(i) Invoice
(ii) Job specification
(iii) Requisitions
(iv) Perpetual inventory
(v) Process chart
(vi) Forecast and tallies
Choose the correct answer from the code given below :
Code :
Identifying Key Records for Cost Control
A food service manager needs specific records to effectively manage and control costs. The goal is to monitor expenses, track usage, manage inventory, and plan efficiently.
Analysis of Relevant Records
- (i) Invoice: Essential for verifying the cost of goods and services purchased. It confirms prices and quantities, forming the basis for tracking expenses.
- (iii) Requisitions: These documents track the movement of supplies from storage to the point of use. They help monitor usage patterns and identify potential waste or theft.
- (iv) Perpetual Inventory: This system continuously updates inventory levels. It aids in managing stock, preventing spoilage due to overstocking, and ensuring availability, thus controlling food costs.
- (vi) Forecast and Tallies: Forecasting future needs based on historical data (tallies) is crucial for accurate purchasing and menu planning. This minimizes overspending and reduces waste from unsold items.
Records Not Directly Used for Cost Control
- (ii) Job specification: This document defines roles and responsibilities, relevant for staffing but not directly for managing food or supply costs.
- (v) Process chart: While useful for operational efficiency, it primarily outlines workflow steps and doesn't directly record cost-related financial data.
Conclusion on Cost Control Records
Based on the analysis, the records most critical for a food service manager to implement cost control are invoices, requisitions, perpetual inventory records, and forecasts/tallies. These directly relate to purchasing, usage, inventory management, and planning.
Therefore, the correct combination is (i), (iii), (iv), and (vi).
Important Questions from Cost accounting
Which of the following is not a method of costing ?
Which is not a direct or indirect cost?
______is also referred to as e-website. It allows the customers to purchase goods from various sellers using Internet.Its aim is to provide a global, reliable, 24 x 7 web based effective sales management system.
- Cost volume profit (CVP) Analysis is an analytical tool for studying the relationship between __________.
The following are the two statements regarding concept of profit. Indicate the correct code of the statements being correct or incorrect. Statement (I) : Accounting profit is a surplus of total revenue over and above all paid-out costs, including both manufacturing and overhead expenses.
Statement (II) : Economic or pure profit is a residual left after all contractual costs have been met, including the transfer costs of management, insurable risks, depreciation and payments to shareholders sufficient to maintain investment at its current level.
