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Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993 Exercise 12
Analyze Performance for a Restaurant
Ted's Eatery is planning to expand operations and is concerned that its reporting system might need improvement. The master budget income statement for the Detroit Ted's, which contains a delicatessen and restaurant operation, follows (in thousands):
The company uses the following performance report for management evaluation:
a There is no sales price variance.
b Variable costs; all other costs are fixed.
Required
Prepare a profit variance analysis for the delicatessen segment. ( Hint: Use gross sales as your measure of volume.)(CMA adapted)
Ted's Eatery is planning to expand operations and is concerned that its reporting system might need improvement. The master budget income statement for the Detroit Ted's, which contains a delicatessen and restaurant operation, follows (in thousands):
The company uses the following performance report for management evaluation:
a There is no sales price variance.
b Variable costs; all other costs are fixed.
Required
Prepare a profit variance analysis for the delicatessen segment. ( Hint: Use gross sales as your measure of volume.)(CMA adapted)
Explanation
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Budget and variance analysis in service ...
Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
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