Professor Elam

Thursday Nov 11 2010

Here is an interesting article that demonstrates a lot of what we study in managerial accounting.

Tao's is located in Vegas and despite the bust there remains a place to see and be seen, and dine at $70 a plate. I found it itneresting that the food preparation including cooking began in the morning, by the lat evening, one more minute is all that is required for the delicate fish and other seafood entrees.

This demonstrates standard costing, process and job order costing, and budgeting for both food and labor but particularly for TIME! Consider this observation from the article.

 Her job is to make sure tables are open for the least amount of time.

This is the perfect example of eliminating non value added costs, an empty table like an empty seat on an ariplane does nto make any money!  And so the concept of Just in Time works for the food being ready the table being filled, and all coming to gether at the right time.

 Here the lobster won tons are being prepared. Notice that there is a standard size for this, think budgeting and standard costing. 

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