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What are two basic requirement of an internal control system

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Reference no: EM131173505

Question:  What are the two basic requirements of an internal control system?

Question:. Explain what separation of record-keeping from control of assets means and why you would use it.

Question:. Explain how lapping works.

Question: List and briefly discuss appropriate procedures for control over product storage and explain how perpetual inventory cards can be used in control.

Question: Explain the difference between standard and actual food cost. If the actual food cost percentage is greater than the standard food cost, what might be the reasons for the difference.

Question:  Explain the purpose of standard cost control.

Question: Identify to what standard food cost percentage is compared.

Question:  A dishonest cashier is engaged in lapping. Using the data below show how much was lapped each day.

Question: Explain how lapping can be prevented.

Question:

A fast food restaurant has only three items on its menu.
a. Calculate the food cost percentage.
b. Calculate the standard food cost percentage if 50 of each are sold
c. Calculate the standard food cost percentage if sales are 25, 100, 25 units
d. Compute the contribution margin in each case

Formula for standard food cost percentage:

Analysis: Which scenario would you find more advantageous and why?

Question:

A coffee shop has only six items on its menu.
a. Compute the cost %, total standard cost, total standard revenue and total standard contribution for each item.

b. Calculate the total standard cost percentage, the actual cost percentage and actual contribution for this month.

Compare the actual cost percentage with the standard cost percentage.
If you were the manager would you be satisfied with these results?

Question:

A fast food restaurant has five items on its menu.

a. Compute the total standard cost, total standard revenue and total standard contribution for each item

b. Calculate the overall cost %

c. Compare actual to standard results

Analysis: In the next week many more of Item 4 and many fewer of Item 1 were sold.
(Other items were sold in the same quantities as this week.) Can you explain what then happened with the food cost percentage?

Attachment:- Discussion Question.rar

Reference no: EM131173505

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