The Simply French Restaurant has identified the followingactivities performed by

Question

The Simply French Restaurant has identified the followingactivities performed by its staff: Settables                  Cookfood                     Serve desert Seatcustomers          Serverorders                 Present and collect bills Takeorders               Take desertorders          Cleantables a. For each of these activities, state whether thenumber of tables served or the number of customers at the tables isa better cost driver. b. What distortions might result in assigning costs ifonly one of the tow drivers in (a) is used? The Simply French Restaurant has identified the followingactivities performed by its staff: Settables                  Cookfood                     Serve desert Seatcustomers          Serverorders                 Present and collect bills Takeorders               Take desertorders          Cleantables a. For each of these activities, state whether thenumber of tables served or the number of customers at the tables isa better cost driver. b. What distortions might result in assigning costs ifonly one of the tow drivers in (a) is used?

Explanation / Answer

a. For each of these activities, state whether thenumber of tables served or the number of      customers at the tables is a bettercost driver.      =========================================================== Activity                                                   Cost Driver ________________________________________________ ________________________________________________ Settables                                              Numberof tables
________________________________________________ Seatcustomers                                     Numberof tables
________________________________________________ Takeorders                                          Numberof customers
________________________________________________ Cookfood                                           Numberof customers
________________________________________________ Serveorders                                         Numberof customers
________________________________________________ Take dessertorders                              Numberof customers
________________________________________________ Servedessert                                        Numberof customers
_________________________________________________ Present bills andcollect  bills                 Numberof tables
_________________________________________________ Cleantables                                          Numberof tables
__________________________________________________ b. What distortions might result in assigning costs ifonly one of the tow drivers in (a) is used.       ============================================================= For some of the activities, it does not matter how many peopleare at the table, what really matters is that the staff has to goto the table to clean or serve the table. For other activities, thenumber of customers is a better cost driver than number of tables.Using the appropriate cost driver should produce more accurate costs of resource usage.

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