FOOD & BEVERAGE SERVICE SYSTEMS

Food & Beverage Service Systems

Task 11

2.1 Use of Financial Statements1

2.2 Cost and Pricing Process1

2.3 Purchasing Process2

Task 24

Budget under £840 for 100 people4

3.1 Menu4

3.2 Price Justification5

4.1 Budgeting5

4.2 Implementation of the Planning6

4.3 Evaluation Process6

Accounting or Measurement Function7

Distribution Function7

Incentive Function7

References8

Food and Beverage Service Systems

Task 1

2.1 Use of Financial Statements

Financial statement is a tool to give true statues of the company. It tends to evaluate the profitability and loss of the company. It also shows the allocation of the resources onto the various activities of the business. According to Chen et al. (2012, pp.52-65), on the basis of financial statements, companies are able to prepare control and monitoring programs as to make corrective plans. The company formulate its future strategies so that they are able make the required profits. The financial statements are shared with all the stakeholders to give the prompt standing of the company that is usually done by the end of the year.

2.2 Cost and Pricing Process

Price is an important tool of the market economy. The price can be defined as the amount of money spent by the seller for manufactured or sold them a product or service. At this price must satisfy the interests of the seller and the buyer's interests. Therefore, the economic relationship between the seller and buyer of presumed consent, in which the seller agrees to sell and the buyer agrees to buy. Therefore, the price always has two limits: 1) maximum (top), 2) the minimum (bottom). According to Turner (2013, pp.1000e107-1), maximum limit quantitatively determined by demand and the minimum limit is determined by the cost of production and circulation. Manufacturer's commodity price is based on the cost of all its costs. Therefore, very often in the economic literature as the price is determined monetary expression of value of goods or services. In the practice of managing the price may not coincide with the value of costs and this deviation is used to control prices in the enterprise.

Strategy of following up with demand. This strategy is similar to the strategy of “cherry-picking”, but instead of holding rates at a constant high level of persuasion and buyers to reach a new level of consumption, the price decreases under strict control. Often the seller receives minor changes in design and opportunities to differ significantly from the previous models. Sometimes, to match lower prices, you have to change the appearance of the goods, promotions to marketing, packaging or distribution method. Price held at each new reduced level long enough to satisfy the entire current demand. Once sales begin to decline significantly, it should be ready for the next lower prices.

2.3 Purchasing Process

Selecting a pricing strategy is the content of the concept of enterprise in determining prices for their products. This determines the planning of revenue and profit of the enterprise from the sale of goods. According to Rivera & Shani (2013, pp.1049-1065), enterprises operating in market conditions, you must first develop a strategy and guidelines for determining the price, following ...