Question
Recently, while eating lunch with your family in a local cafeteria, you observe a practice that is somewhat unusual. As you reach the end of
Recently, while eating lunch with your family in a local cafeteria, you observe a practice that is
somewhat unusual. As you reach the end of the cafeteria line, an adding machine operator asks how
many persons are in your party. He then totals the food purchase on the trays for all of your family and
writes the number of persons included in the group on the adding machine tape He hands you the tape
and asks you to pay when you finish eating. Near the end of the meal, you decided you want a piece of
pie and coffee so you return to the line, select your food, and again go through the same procedures,
but this time he staples the second tape to the original and returns it to you. When you leave the
cafeteria, you hand the staples adding machines to the ash register operator who totals the tapes, takes
your money and puts the tape on the spindle.
Required:
1. What internal controls has the cafeteria instituted for its operations?
2. How can the manager of the cafeteria evaluate the effectiveness of the controls?
3. How do these controls differ from those used by most cafeterias?
4. What are the costs and benefits of the cafeteria's system?
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