Managerial Accounting Special Project 2
ACG2071 – Professor Beeler
December 4, 2008
Business: Zaxby’s – “Real Chicken” (franchise)
4067 Millenia Blvd
Orlando, FL 32839
A) What type of product do they offer?
Zaxby’s is a restaurant that specializes in meals centering around chicken. They’re also known for their “Zax Sauce”, which is a trademarked recipe. It is a fast-food establishment, where you can dine-in or order take-out.
B) How do they track their inventory?
All of the company’s inventory is tracked through a “P. & L.” tracking program that the cash registers are linked to. Each day management is able to instantly see the volume of sales and view changes in inventory.
New product is ordered twice a week and arrives on Tuesdays and Fridays. New-inventory budget is split between these orders, with the majority going to Friday inventory for weekend sales.
C) How do they treat lost, damaged, or stolen inventory for their financial books?
The business’s budget has a 2% allowance for lost, damaged, or stolen inventory. It is recorded in the financial records as “Waste”.
D) What type of overhead is fixed?
Fixed overhead includes utilities (water, electric, etc), lawn service, satellite TV service, security, a cleaning crew that comes once a month, and a linen service that cleans the rugs.
E) Determine the expenses that are specific to their type of business and document.
Expenses include food purchasing, paper products, miscellaneous items (such as bathroom amenities, light bulbs, etc), and some petty cash which goes towards ice, produce, and anything else the business may find itself short on prior to the next shipment of goods.
F) How do they track discounted service or products on sale and returns?
Discounts, sales, and returns are all tracked through the computer system as well. Student, Senior, Military, and other discounts, as well as Coupon codes are...