In: Accounting
Please do it by type not pics.
The Early Break Restaurant (EBR) is a privately owned restaurant open seven days a week from 5:00 AM to 2:00 PM. EBR specializes in breakfast and lunch. It is owned and operated by Rose Marie. Rose acts as hostess (seating customers, maintaining a waiting list) and the only cashier. Her trusted friend, Morey Fennel, is the restaurant manager.
Morey also prepares a weekly list of supplies that are needed by EBR and verifies each vendor order when it is delivered. Morey is very particular about these supplies and does not hesitate to have items returned to vendors. Sally's nephew, Andy, makes all the needed entries in the accounting information system (AIS). Rose seats customers at tables and servers greet customers and ultimately take their orders.
The servers write customer orders on paper tickets which they bring to the kitchen for the line cooks to use in preparing the food. When the order is ready, the server picks up the food and the paper ticket. The server delivers the food, totals the ticket and when the customer is ready leaves it with the customer at the table. When ready to leave, the customer takes the ticket to Rose at the cash register. Rose takes the ticket, enters it into the cash register, takes the customer’s payment and makes the change as needed. On very rare occasions a customer refuses to pay all or part of their ticket due to perceived poor service or food. Rose writes the amount of the discount or nonpayment on the ticket.
At the end of the day, Andy makes all needed entries in the accounting information system and prepares a bank deposit daily which Rose takes to the bank.
Morey prepares a list of inventory to order each week and gives it to Andy who places the order and records it in the accounting information system. When the order arrives from the vendor, Morey does a physical count of the items received and verifies this count to the delivery list or packing list. Morey inspects each of the items for quality and on occasion requests that received items be returned to the vendor. When this happens, he completes an item return form and places the items to be returned in a special place in the cooler or storeroom. The physical count, verified packing/delivery list, any discrepancies, and an item return form (if there is one) are left in the office for Rob. If there is an item return form, Andy contacts the vendor for permission to return the item. When the invoice arrives, Andy compares the invoice to the annotated packing or delivery list done by Buddy. He notifies the vendor of any needed changes to the invoice (e.g., return not reflected or a vendor mistake in the order) and prepares the check to make payment and makes all the needed entries in the accounting information system. After Rose signs the check, Andy mails it to the vendor.
1.Focusing on the revenue cycle, identify the sub-processes found in the Early Break Restaurant case?
2.For each of the revenue sub-processes identified list the activities that make up that sub-process, list activities in order of performance?
1 | Revenue Cycle, sub processes |
(i) | Taking the order |
(ii) | Preparing the food |
(iii) | Delivering the food to the customer |
(iv) | Taking the payment from customers |
2 | List of activites that make up that sub process |
(i) | Taking the order |
a | Rose seats the customers at table |
b | Servers greet them |
c | Servers take their orders |
(ii) | Preparing the food |
a | Servers write customers order on paper ticket |
b | Bring that paper ticket to kitchen for line cook to use in preparing the food |
(iii) | Delivering the food to the customer |
a | When the food is ready, servers pick up the food and paper ticket from kitchen. |
b | Servers deliver the food to the customer at table. |
(iv) | Taking the payment from customers |
a | Servers totals the ticket |
b | Leaves the ticket with the customer at the table |
c | Customer takes the ticket to the Rose at the cash register |
d | Rose takes the ticket, enter it into the cash register |
e | takes the payment from customer |
f | Make any change as needed, if customer does not pay in full or part due to poor service or food quality. |
g | Rose writes the amount of nonpayment or discount on the ticket. |