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Title: The applicability of time-driven activity-based costing for menu planning & analysis in a Maltese restaurant
Authors: Attard, Jason
Keywords: Restaurants -- Cost control
Restaurant management -- Malta
Activity-based costing -- Malta
Issue Date: 2012
Abstract: Purpose: The main objective of this dissertation is to build a time-driven activity-based costing (TDABC) model in a local restaurant to derive the cost of resources used by each menu item. The model also aims to produce capacity analysis, to show the excess capacity provided and its cost. Restaurants normally use variable costs to conduct Menu Engineering (ME) analysis. This dissertation aims to make use of ME, but with the real costs of producing the items. Design: A TDABC model was developed in order to derive the real cost per unit of production. Equations for cost drivers and capacity cost rates were developed to ease the adaptability of the model. Capacity analysis was conducted to produce budgets, which take into consideration the excess capacity (which can be used with minimal extra expenditure). Findings: The findings suggested that each menu item is giving positive contribution, except for only one menu item. However, weekly analysis shows a negative Back of House (BOH) Contribution. This was mainly attributable to the costs of spare capacity. Conclusions: The findings suggest that rationing capacity, and increasing volume, would yield a positive BOH contribution. TDABC can enhance other management techniques, by producing more accurate results. Value: This dissertation combines TDABC with ME to produce a holistic menu planning tool that can be used to budget for better profitability.
Description: B.ACCTY.(HONS)
Appears in Collections:Dissertations - FacEma - 2012
Dissertations - FacEMAAcc - 2012

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