1. **Stating the problems:** We have multiple sub-questions related to cost control, purchasing documents, menu costing, and a function cost analysis. --- ### QUESTION ONE **a) Define cost control:** Cost control is the process of monitoring and regulating the expenses to ensure they do not exceed the budgeted amount. **b) Documents in purchasing process:** i) **Invoice:** A document sent by the supplier listing goods or services provided and the amount due for payment. ii) **Delivery note:** A document accompanying goods during delivery showing details of items delivered, used to verify receipt. **c) Purchasing documents:** i) **Purchase Requisition (PR):** Internal document requesting the purchase of certain items. ii) **Purchase Order (PO):** Official order sent to a supplier detailing the items to be purchased. **d) Stores and portions:** i) **Store Requisition:** Internal document to request items from the store. ii) **Standard Portions:** Help ensure consistency, control costs, and reduce waste in a business. --- ### QUESTION TWO Given data: - Main course popularity = 100%, food cost% = 35%, cost/portion = 25 - Beverages popularity = 40%, food cost% = 35%, cost/portion = 10 - 600 portions total - Overhead costs: wages 12400, pots and pans 15200, repairs 4000, electricity 11000, other overheads 9480 **a) Calculate weighted average food cost percentage:** Popularity weights need clarification; likely main course and beverages combined portions: Let’s assume total portions = 600, main course portions = 600 (100%), beverages portions = 600 x 40% = 240 portions Weighted food cost % = $$\frac{(100\% \times 35\%) + (40\% \times 35\%)}{100\% + 40\%} = \frac{35 + 14}{140} = \frac{49}{140} = 35\%$$ Or more directly weighted by portions: $$\text{Weighted food cost } = \frac{(600 \times 0.35)+(240 \times 0.35)}{600+240} = 0.35 = 35\%$$ **b) Three advantages of using profitability:** 1. Helps identify profitable items and optimize menu. 2. Controls costs by highlighting waste or overspending. 3. Supports pricing strategies to maximize revenue. **c) Prepare profit statement:** - Food Sales Revenue = Sum of (Portions x cost/portion) Main course: 600 x 25 = 15000 Beverages: 240 x 10 = 2400 Total sales = 17400 - Total overheads = 12400 + 15200 + 4000 + 11000 + 9480 = 52080 Assuming indirect costs above include wages etc., total costs = (food cost) + overheads Food cost (35% of sales) = 0.35 x 17400 = 6090 Profit = Sales - (Food cost + Overheads) = 17400 - (6090 + 52080) = -40870 (Loss) (Note: This shows loss; possibly some data or assumptions are off; typically direct and indirect costs need proper classification.) --- ### QUESTION SEVEN Food costs: - Bream: 15 kg x 17 = 255 - Ox-tail: 20 kg x 10 = 200 - Chicken: 10 kg x 52 = 520 - Rice: 10 kg x 23 = 230 - Vegetables: 10 kg x 18 = 180 Total food cost = 255 + 200 + 520 + 230 + 180 = 1385 Labour costs: - Chefs: 2 x 4 x 150 = 1200 - Waiters: 2 x 4 x 45 = 360 - Florist: 850 - Public address: 740 - Comedian: Performing 30 min, cost = (200/20)*30 = 300 Total labour and overhead = 1200 + 360 + 850 + 740 + 300 = 3450 Calculate: (i) Food cost per portion: Assuming servings equal to sum of quantities or given portion count; not specified, assume 100 portions. $$\text{Food cost per portion} = \frac{1385}{100}=13.85$$ (ii) Selling price per portion: Include payroll 6%, overheads 10%, profit 22% of sales. Let $S$ be selling price, then: $$S = \frac{\text{cost per portion}}{1 - (0.06 + 0.10 + 0.22)} = \frac{13.85}{1 - 0.38} = \frac{13.85}{0.62} \approx 22.34$$ (iii) Total charge: Total portions x selling price = 100 x 22.34 = 2234 --- **Final answers included in detailed steps above.**