As a new graduate employee in a hospitality company, you are being introduced to the staff. The company owns several businesses. You have been informed that your initial job will require you to analyse the costing system of a restaurant (Caf Deluxe) which is situated on a beach side tourist area. Your supervisor has recently attended a business conference where he was introduced with an improved costing system, Activity Based Costing. Caf Deluxe presently uses traditional costing method and they want your help to explore the adoption of Activity based costing systems. In your first visit you have noticed that it is a sit-down restaurant and offers menu dining. The corporate marketing manager is considering introducing a buffet menu at Caf

write on Cost classification

Consider

Try to locate different processes by which food is served in the restaurant Process; example- order processing, food preparation, food and customer service

Try to link different activities for each of these process

Do you think each of these activities are necessary or some of these can be eliminated?