Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 27, Problem 10E
Lean principles for a restaurant
The management of Daddy-O’s fast-food franchise wants to provide hamburgers quickly to customers. It has been using a process by which precooked hamburgers are prepared and placed under hot lamps. These hamburgers are then sold to customers. In this process, every customer receives the same type of hamburger and dressing (ketchup, onions, mustard). If a customer wants something different, then a “special order” must be cooked to the customer’s requirements. This requires the customer to wait several minutes, which often slows down the service line. Daddy-O’s has been receiving more and more special orders from customers, which has been slowing service down considerably.
- a. Is the Daddy-O’s service delivery system best described as a push or pull system? Explain.
- b. How might you use lean principles to provide customers quick service, yet still allow them to custom order their burgers?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The Robert Baker Bread Company is planning to open a production plant to bake bread for sale and distribution in grocery stores. Robert's customers have already become familiar with his company's name and reputation for quality in visiting his cafés throughout the Midwest. Customers like the ability to customize the amount of seasoning and flavors that Robert puts in the various types of bread. When Robert begins mass production of the bread what should he be most concerned with regarding his customers' reaction?
Group of answer choices
a) His customers have become used to the ability to customize the bread, which they will not have in a mass-produced product sold in grocery stores
b) The cost of the bread in the grocery store will have to be higher than in his café
c) Robert's café operations will lose customers who will simply buy the bread at the grocery store instead
d) Robert will need to open more café locations to sell whatever bread the grocery stores do not sell
please submit solution as soon as possible
The Yum and Yee food truck near the business school serves customers during lunch hour by taking orders and making fresh batches
of stir-fry. Customers have only one choice during the lunch hour so that Y&Y can maximize the number of customers served. Assume
that each customer places just one lunch order, and all lunch orders are the same size: one unit of stir-fry. The stir-fry cooking works in
this manner. First, one person cooks a batch of orders in a wok. The cooking depends upon the number of orders in the batch. The
time to cook just one order is 3.3 minutes. For each additional order in the batch, it takes 0.5 minute more to cook. Thus, cooking two
orders in a batch takes 3.8 minutes, cooking three orders takes 4.3 minutes, and so on. The other process is bagging and accepting
payments (done by a separate person), which takes 0.9 minute per order.
(Do not round intermediate calculations. Round your answer to 1 decimal place.)
a. What is the setup time of this process?
(Do not…
Chapter 27 Solutions
Financial And Managerial Accounting
Ch. 27 - What is the benefit of the lean philosophy?Ch. 27 - What are some examples of non-value-added lead...Ch. 27 - Why is a product-oriented layout preferred by lean...Ch. 27 - How is setup time related to lead time?Ch. 27 - Why do lean manufacturers favor pull or make to...Ch. 27 - Why would a lean manufacturer strive to produce...Ch. 27 - How is supply chain management different from...Ch. 27 - Why does lean accounting result in fewer...Ch. 27 - Why do lean manufacturers use a raw and in process...Ch. 27 - Why is the direct labor cost category eliminated...
Ch. 27 - Prob. 11DQCh. 27 - What is the benefit of identifying non-value-added...Ch. 27 - In what ways can the cost of a process be...Ch. 27 - Lead time Blues Inc. manufactures jeans in the...Ch. 27 - Prob. 2BECh. 27 - Lean accounting The annual budgeted conversion...Ch. 27 - Cost of quality report A quality control activity...Ch. 27 - Process activity analysis Roen Company incurred an...Ch. 27 - Lean principles The chief executive officer (CEO)...Ch. 27 - Prob. 2ECh. 27 - Lean principles Rag Swag Inc. manufactures various...Ch. 27 - Lead time analysis Furry Friends Inc. manufactures...Ch. 27 - Reduce setup time Vernon Inc. has analyzed the...Ch. 27 - Compute lead time Jackson Fabricators Inc....Ch. 27 - Calculate lead time Williams Optical Inc. is...Ch. 27 - Suppy chain management The following is an excerpt...Ch. 27 - Employee involvement Quickie Designs Inc. uses...Ch. 27 - Lean principles for a restaurant The management of...Ch. 27 - Accounting issues in a lean environment Eon...Ch. 27 - Lean accounting Westgate Inc. uses a lean...Ch. 27 - Lean accounting Modern Lighting Inc. manufactures...Ch. 27 - Lean accounting Vintage Audio Inc. manufactures...Ch. 27 - Pareto chart Meagher Solutions Inc. manufactures...Ch. 27 - Cost of quality report A. Using the information in...Ch. 27 - Pareto chart for a service company Three Rivers...Ch. 27 - Cost of quality and value-added/non-value-added...Ch. 27 - Process activity analysis The Brite Beverage...Ch. 27 - Process activity analysis for a service company...Ch. 27 - Prob. 21ECh. 27 - Lean principles Bright Night, Inc., manufactures...Ch. 27 - Lead time Sound Tek Inc. manufactures electronic...Ch. 27 - Lean accounting Dashboard Inc. manufactures and...Ch. 27 - Pareto chart and cost of quality report for a...Ch. 27 - Prob. 1PBCh. 27 - Lead time Master Chef Appliance Company...Ch. 27 - Lean accounting Com-Tel Inc. manufactures and...Ch. 27 - Pareto chart and cost of quality report for a...Ch. 27 - Make a Decision Lean Performance for...Ch. 27 - Prob. 2MADCh. 27 - Prob. 3MADCh. 27 - Prob. 4MADCh. 27 - Ethics in Action In August, Lannister Company...Ch. 27 - Communication Ethan Fromme, the chief financial...Ch. 27 - Leese Inc. has the following quality financial...Ch. 27 - When measuring the cost of quality, the cost of...Ch. 27 - In measuring the cost of quality, which one of the...Ch. 27 - External failure costs include all of the...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Why Does It Matter? MACS CUSTOM CATERING, Eugene, Oregon Macs Custom Catering, an award-winning catering business located in Eugene, Oregon, specializes in providing only the best for you and your guest. Macs Custom Catering has been in business for over 30 years and is experienced in providing catering services at weddings, corporate events, and large sit-down events. It offers several signature buffet options, including Northwest Bounty, Hawaiian Luau, and Italian Fest. Imagine that you have been hired to set up the accounting system for a catering business such as Macs. What accounts would be included in the chart of accounts? As you list the accounts, identify the type of account. Is the account an asset, a liability, or owners equity?arrow_forwardI.M. Aruban has a sandwich shop in a downtown business district. Several ofhis customers have said that they would purchase from his shop more oftenif he offered a delivery service. I.M. is considering establishing a deliveryservice to meet the needs of his market. He believes that he will have to purchasea fax machine, install a new phone line for the fax machine, purchasea delivery van, and hire at least one delivery person. I.M. asks your advice indetermining whether he should take on the delivery service venture.a. What steps would you recommend that I.M. use in reaching a profitabledecision?b. Explain to I.M. what each step involves.arrow_forwardYou are the purchasing officer of a fast-food restaurant that is selling hamburger in the city of Muscat. The fast food chain business operates 25 stores strategically located in the region. Due to the decline in demand caused by the epidemic, the company is proposing measures to cut cost. The manager asked you to look for cheaper source of raw materials (bread). The company always avail of trade and cash discount. You decided to call the suppliers and gathered the following data; Supplier A (Lulu Supermarket) – The supplier offers 15% trade discount. Supplier B (Carrefour Market) – The supplier offers chain discounts of 10/5/2. Supplier C (Danube Supermarket) – The supplier offers no trade discount but cash discount of 5/10, n/30. Supplier D (Panda Supermarket) – The supplier offers trade discount of 10%, the terms of payment are 2/10, n/30. If the company decides to buy OMR 1,500 worth of bread from Supplier D (Panda Supermarket), what is…arrow_forward
- You are the purchasing officer of a fast-food restaurant that is selling hamburger in the city of Muscat. The fast food chain business operates 25 stores strategically located in the region. Due to the decline in demand caused by the epidemic, the company is proposing measures to cut cost. The manager asked you to look for cheaper source of raw materials (bread). The company always avail of trade and cash discount. You decided to call the suppliers and gathered the following data; Supplier A (Lulu Supermarket) – The supplier offers 15% trade discount. Supplier B (Carrefour Market) – The supplier offers chain discounts of 10/5/2. Supplier C (Danube Supermarket) – The supplier offers no trade discount but cash discount of 5/10, n/30. Supplier D (Panda Supermarket) – The supplier offers trade discount of 10%, the terms of payment are 2/10, n/30. If the company decides to buy OMR 1,500 worth of bread from Supplier A (Lulu Supermarket), what is the amount of trade discount? What…arrow_forwardThe Fresh Sausage Company takes fresh ingredients and turns them into sausage for sale in the chilled food section of supermarkets. Which of Fresh Sausage Company’s assets will take the most time to turn in to cash? a. Inventory of fresh meat b. Inventory of finished sausages c. Receivable d. Inventory of herbs and spicesarrow_forwardPlease do not give solution in image format and fast answering please and explain proper steps by Step.?arrow_forward
- Hi, Pls help with questions a & b highlihted in green. Ty.arrow_forwardDiscussion Prompt Steve and Linda Hom live in Bartlesville, Oklahoma. Two years ago, they visited Thailand. Linda, a professional chef, was impressed with the cooking methods and the spices used in Thai food. Bartlesville does not have a Thai restaurant, and the Homs are contemplating opening one. Linda would supervise the cooking, and Steve would leave his current job to be the maître d'. The restaurant would serve dinner Tuesday through Saturday. Steve has noticed a restaurant for lease. The restaurant has seven tables, each of which can seat four. Tables can be moved together for a large party. Linda is planning on using each table twice each evening, and the restaurant will be open 50 weeks per year. The Homs have drawn up the following estimates: Average revenue, including beverages and $45 per meal desserts Average cost of food 15 per meal Chef's and dishwasker's salaries 5,100 per month Rent (premises, equipment) 4,000 per month Cleaning (linen, premises) Replacement of dishes,…arrow_forwardDetermine the following amounts for Sprouts: r: SFM) offers a healthy grocery store experience. Wendy's Company ( Ticker: WEN) is primarily engaged in the business of ting, developing and franchising a system of distinctive quick- service restaurants. In answering the following questions, consider pact that the COVID-19 pandemic would have on each company's business model. npany uth's Hospitality Group (RUTH) prouts Farmers Market (SFM) Vendy's Company ( WEN) Statement of Cash Flows For the year ended: ($ in thousands) Determine the following amounts for Sprouts in 2021: Determine the following amounts for Sprouts: a. Ending cash balance in 2020: b. Ending cash balance in 2021: c. Increase (de Assessment Tool iFrame 2021: Show all imagesarrow_forward
- Please help me with a question that is on the attached imagearrow_forwardssarrow_forwardBluth's Original Frozen Banana Stand is a brand of frozen banana stands that operate at a variety of events and locations across Southern California. Recently you spotted a Bluth's Original Frozen Banana Stand during a visit to Newport Beach. On this beach, street vendors offer a variety of foods and drinks. At the Bluth's Original Frozen Banana Stand, beach goers can purchase a chocolate covered frozen banana covered with nuts for $4.00. For the purpose of this hypothetical example, let's assume that the variable cost of each banana sold is $1.00. There are three options of obtaining a Bluth's Original Frozen Banana Stand. Option 1: Pay a fixed rental fee to the Bluth Company for $2,100 per month Option 2: Pay a fee of $1,040 per month plus 10% of all revenue from banana sales Option 3: Pay 25% of all revenue from the snow cone sales to Bluth Company Using the hypothetical Bluth's Original Frozen Banana Stand example, calculate the number of bananas that the operator of a Bluth's…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubFinancial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Essentials of Business Analytics (MindTap Course ...StatisticsISBN:9781305627734Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. AndersonPublisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Essentials of Business Analytics (MindTap Course ...
Statistics
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Elements of cost | Direct and Indirect: Material, Labor, & Expenses; Author: Educationleaves;https://www.youtube.com/watch?v=UFBaj6AHjHQ;License: Standard youtube license