Managerial Accounting Scenario 2

The top management of a fast-food hamburger chain is considering installing point-of-sale machines that will allow customers to pay for food with an automated-teller-machine card. Previously, the restaurant has accepted only cash.

What information could the management accounting department supply to assist management with this decision?

As the manager, I believe today we live in a fast pace society and like most grocery stores that have the self check out which customers love because they get in and out quick. I think this will be the same way with the fast-food hamburger chain. Most people use credit or debit card today rather than cash. I would need to ask the management accounting department how many customers they serve a day on average, how many would rather use a card. I would ask the cost of installing the point of sale machine and also how much money will the company make by serving more customers in a day. Customer will come more often because of the quick service and will enjoy the convenience.

NOW THE QUESTIONS IS

Do you think it would be necessary to then cut back on workers if the point of sale machines are essentially making you more money in the long run or keep the same amount of staff and add in the point of sale machines