Colorado State University ABC System in Restaurants Case Study Paper COMPREHENSIVE PROJECT COSTING Restaurants offer a variety of menu items which have di

Colorado State University ABC System in Restaurants Case Study Paper COMPREHENSIVE PROJECT COSTING

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.

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.

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.

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.

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.). In Module 3, you will be submitting this information as part of your Portfolio Project milestone.

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.)

Compute the cost of each product under the simple/traditional costing method. For period costs, use direct labor hours.

Compute the net operating profit margin of each product using the simple/traditional costing method.

Compute the total overhead and period cost allocation under activity-based costing (ABC) assumptions for each product.

Compute the per unit ABC cost of each product.

Compute the net profit margin of each product using the ABC costing method.

Compare the net profit margin of the products under the simple/traditional cost assignment and the ABC assignment for each product. Evaluate the difference.

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 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.

** Five Guys is what was selected as the topic. I have atached the previous paper referring to it. Running Head: COST ANALYSIS FOR FIVE GUYS
Cost Analysis for Five Guys
Regina Pipkins
ACT460 – Cost Accounting
Colorado State University – Global Campus
Dr. Edward Balli
May 1, 2020
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COST ANALYSIS FOR FIVE GUYS
Rationale.
Fast-casual restaurants are those that operate based on takeaway services with little
table services. Fast-casual restaurant pride in high-quality goods customized for individual
customers and their unique preferences (Pearce, 2016). There are several fast-casual
restaurants all around the world, including Five Guys, Boston market, polio tropical. Five
Guys is situated in Virginia and focuses on the production of French fries, hot dogs,
hamburgers, and chicken and turkey burgers, among others. I chose Five Guys to conduct its
cost analysis. To achieve a precise and smooth representation of the company’s needs as far
as costs are concerned, I will explore the assessment portfolios and draw data relating to the
chicken burger, turkey burger, and Hamburgers.
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COST ANALYSIS FOR FIVE GUYS
Items
Chicken/Turkey
Beef
Eggs
Bread crumps
Sauce and
mayo
Lettuce
Equipment
Wages and
Salaries
Research
Marketing
Chicken burger
$550,000
$50,000
$40,000
Annual Cost
Turkey burger
$450,000
Hamburgers
$425,000
$20,000
$25,000
$35,000
70,000
$60,000
$55,500
$900,500
$575,000
$40,500
$80,000
$75,000
Cost Analysis for Five Guy
600000
500000
400000
300000
200000
100000
0
Chicken/Turkey/Beef
Eggs
Chicken burger
Sauce, mayo and Bread
crumps
Turkey burger
Lettuce
Hamburgers
Chicken burger
The current rapid expansion in all sectors and the rising security concerns have led to
denied access to most of the public domains (Nas, 2016). The data provided above shows the
following for the first product in the menu (the chicken burger). Firstly, the product is
prepared for chicken as a principal constituent. The primary raw materials (Chicken) cost the
company $550,000 annually. There other significant materials used alongside their costs are
as follows: eggs ($50,000), bread crumbs ($40,000), and lettuce ($60,000).
4
COST ANALYSIS FOR FIVE GUYS
Turkey burger
The data provided above shows the following for the second product on the menu (the
turkey burger). Turkey, constituting $450,000 to the annual costs, on the other hand, is the
primary ingredient in its preparation. The other significant ingredients used alongside their
costs are given as follows: eggs ($25,000), bread crumbs ($35,000), and lettuce ($55,000).
The rest of the costs incurred are the fixed costs such as the cost of equipment and the salary.
They cannot add up to the cost analysis of the individual menu items because they are shared
across by the organization’s operations.
Hamburger
The last menu item in this cost analysis is the hamburger. The data provided above
shows the following for the last product on the menu (the hamburger). It is prepared from
beef primarily. Beef costs $425,000 annually, while the eggs and lettuce cost $20,000 and
$40,500, respectively. The last ingredients are sauce and mayo, costing $70,000 annually.
Conclusion
A cost analysis provides a clear view of the overall project by analyzing the costs
incurred to produce different products. This helps to determine how feasible the project or the
solution is, compared to the other available alternatives (Bowden & Belfield, 2015).
Compared with the sales and income from each project, for example, the most feasible and or
profitable projects are capitalized. The most significant project that cannot be dropped; on the
other hand, will attract strategies to improve profitability and cut on costs.
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COST ANALYSIS FOR FIVE GUYS
References
Bowden, A., & Belfield, C. (2015). Evaluating the Talent Search TRIO program: A BenefitCost Analysis and Cost-Effectiveness Analysis. Journal Of Benefit-Cost Analysis,
6(3), 572-602. https://doi.org/10.1017/bca.2015.48
Nas, T. F. (2016). Cost-benefit analysis: Theory and application. Lexington Books.
Pearce, D. W. (2016). Cost-benefit analysis. Macmillan International Higher Education.
Running head: INSERT SHORTENED TITLE (50 CHARACTERS OR FEWER)
Title of Paper
Student Name
Colorado State University – Global Campus
1
INSERT SHORTENED TITLE (50 CHARACTERS OR FEWER)
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Title of Paper
Academic essays should begin with an introduction. The introduction will provide
readers with the context necessary for understanding your argument and the body of your paper.
When composing the introduction, think about what context or background information the
reader would benefit from knowing. Once your context is established, transition from that
context into your thesis statement. The thesis statement generally comes at the end of your
introduction and usually consists of a few sentences that sum up the argument for your paper
overall. Thesis statements should also provide a roadmap for the reader so that they can navigate
through the ideas present in the rest of your paper.
Level 1 Header
Headers are useful for organizing your paper. Level 1 headers are used with broad or
general topics in your paper. Depending on the topic, length, and genre of your assignment, you
might use only Level 1 headers. Level 1 headers should be bolded and centered. The longer and
more complex your argument is, the more you might benefit from using Level 2 and Level 3
headers. Level 4 and Level 5 headers exist, but they should only be used in manuscripts with
many topics and subtopics. Generally, if you choose to use subsections (Level 2–5 headers) in
your paper, you should have at least two subsections for each level of header. For more
information on how to use headings in your paper, visit the APA Style Blog.
Level 2 Header
Body paragraphs should follow the MEAL structure. This structure will help your ideas
build on one another in order to support your thesis statement and to develop your argument over
the course of your essay. Each body paragraph should consist of a claim, which also functions as
the topic sentence or the main idea of a paragraph. The claim should then be followed by
evidence. Evidence is typically source material that you either paraphrase or quote directly.
INSERT SHORTENED TITLE (50 CHARACTERS OR FEWER)
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Remember, APA style guidelines prefer paraphrasing to directly quoting a source. Evidence
should provide support for your main idea in the form of examples, statistics, facts, anecdotes,
etc. Next, your paragraph should include analysis. Analysis is your explanation of the preceding
evidence and its significance. In other words, you should not let the evidence speak for itself.
Through analysis, you can show the reader exactly how you interpret the evidence, how it
supports your claim for the paragraph, and how it supports your thesis statement. Finally, each
body paragraph should end with a sentence that functions as a conclusion for the paragraph. This
sentence can rephrase the claim for the paragraph, tie back to the thesis statement, or transition to
the idea you present in the next paragraph.
Level 2 Header
Whenever you use a source, it must be cited both in text and in the references. However,
there are two types of sources that should only be cited in text and do not need to be included on
the References page: (a) Sources that do not produce recoverable data and cannot be located by
the reader, such as personal communications, and (b) Religious texts and classical works, such as
the Bible, the Qur’an, and Greek or Roman works. Both your in-text citations and references
should follow APA style. In academic writing that follows APA style, it is important to
paraphrase source material whenever possible, as opposed to quoting the source directly. When
paraphrasing source material, you can use page numbers to point the reader to a specific portion
of the source, but this is optional. When paraphrasing, you should follow the paraphrased
material with an in-text citation that contains the author’s last name and the source’s year of
publication (Author, Year) or use a signal phrase to introduce the paraphrased material with the
author and year (ex: “According to Eriksson (2015)…”). When quoting source material directly, a
page number (p. ) or page range (pp. ) is always required. If the source does not include page
INSERT SHORTENED TITLE (50 CHARACTERS OR FEWER)
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numbers, use a paragraph number (para. ) instead. When citing in text, parenthetical citations
should appear as close to the source material as possible. The author’s name should never be
separate from the year of publication.
In-text citations point readers to the References page, which is a list of all the sources
used in your assignment. When formatting the References page, start a new page. Then, type and
center the word References at the top, but do not use any additional formatting (e.g., bold,
underline, italics, quotation marks, etc.). Alphabetize the references according to the first
author’s last name or by the name of the organization if there is no individual author for a text.
All references should have a hanging indent: The first line of each reference should be flush with
the left margin, and subsequent lines should be indented. Finally, each reference should follow
APA style, and the proper formatting will change depending on the type of source.
Conclusion
The last section or paragraph of your paper should be the conclusion. A conclusion
should reiterate the major points of your argument. To do this, think about developing your
thesis by adding more detail or by retracing the steps of your argument. You can recap major
sections for the reader. You can also summarize the primary supporting points or evidence you
discussed in the paper. The conclusion should not introduce any new information in order to
avoid confusing the reader. To end the paper, think about what you want your reader to do with
all the information you just presented. Explain what logical next steps might be taken in order to
learn more about this topic. Use the conclusion to establish the significance and importance of
your work, motivate others to build on what you’ve done in this paper, and encourage the reader
to explore new ideas or reach other conclusions.
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References
Centers for Disease Control and Prevention. (n.d). Coping with a traumatic event. Retrieved
from https://www.cdc.gov/masstrauma/factsheets/public/coping.pdf
Chaitin, J., & Steinberg, S. (2013). “I can almost remember it now”: Between personal and
collective memories of massive social trauma. Journal of Adult Development, 21(1), 30–
42. https://doi.org/10.1007/s10804-013-9176-4
Eriksson, M. (2015). Managing collective trauma on social media: The role of Twitter after the
2011 Norway attacks. Media, Culture & Society, 38(3), 365–380.
https://doi.org/10.1177/0163443715608259
Kaplan, E. M. (2005). Trauma culture: The politics of terror and loss in media and literature.
Piscataway, NJ: Rutgers University Press.
Meek, A. (2011). Trauma and media. https://doi.org/10.4324/9780203863190
National Institute of Mental Health. (2017). Post-traumatic stress disorder (PTSD). Retrieved
from https://www.nimh.nih.gov/health/statistics/post-traumatic-stress-disorder-ptsd.shtml

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