As mentioned in the opening part of the Robatelli's Pizzeria case, there are now 53 locations throughout the greater Pittsburgh area. Each one of those restaurant locations employs a full-time store manager and varying numbers of kitchen staff, servers, and delivery staff. The kitchen staff, servers, and delivery staff vary between full-time and part-time status. There tend to be high rates of turnover, especially among the part-time staff. Robatelli's pays its employees on a weekly basis each Friday for the week ending on the previous Saturday. Employee paychecks include withholdings for federal taxes as well as state and local taxes applicable for the employee's residence. Employees may live in one of three states and over 25 municipalities that are included in the greater Pittsburgh regional area. All payroll accounting is handled by Robatelli's at its home office.

Each restaurant must also maintain various fixed assets in order to operate.Following is a general list of fixed assets for each store:

Furniture and store fixtures, including tables, chairs, and built-in items such as shelving, counters, and booths

Kitchen equipments, such as refrigerators, stoves, ovens, and dishwashing machines

Computers Note that the number of each of these fixed assets maintained at each location varies, depending upon the size of the store. Also note that each member of the delivery staff uses his or her personal automobile (rather than a company-owned car) for customer deliveries.

In addition, the home office maintains the following types of fixed assets:

Land and the office building

Office furniture and fixtures

Computers and other office equipment

Telephone systems

Finally, fixed assets maintained at the commissary include the following:

Fixtures, such as built-in cabinets and shelving

Kitchen equipment

Computers

Delivery trucks

All fixed asset accounting is handled by Robatelli's at its home office.

Required:

Describe how you believe an efficient and effective system of fixed assets accounting should be organized at Robatelli's. Be sure to include the following issues in your response:

a. How should the fixed assets accounting department maintain control over fixed assets in the various restaurant locations?

b. How should IT systems be used in the fixed assets process?