Food Cost Accounting at Simply Indian Restaurant – Review and Proposal

This report presents a comprehensive analysis of food cost accounting at Simply Indian Restaurant, located in Lower Hutt Central, Wellington, New Zealand. The study addresses the restaurant's challenges in cost management, particularly the increasing cost levels impacting profitability. The research employs secondary data collection, a survey study for primary data, and qualitative analysis. The report includes an introduction to the restaurant industry and the organization's background, outlines the project scope, details the research methodology, and provides a literature review on costing methods and cost controls. The discussion section presents survey results, identifies solution areas, and considers limitations and ethical considerations. The report concludes with long-term and short-term recommendations for improving food cost accounting and control, aiming to enhance the restaurant's financial performance. The appendices include the survey questionnaire used in the primary data collection.

Running Header: FOOD COST ACCOUNTING AT SIMPLY INDIAN RESTAURANT –
REVIEW AND PROPOSAL OF FOOD COST CONTROL FRAMEWORK 1
Food Cost Accounting at Simply Indian Restaurant – Review and Proposal of Food Cost
Control Framework

Food Cost Accounting at Simply Indian Restaurant – Review and Proposal of Food Cost
Control Framework 2
Table of Contents
Executive Summary...................................................................................................................4
1. Introduction.........................................................................................................................5
1.1. Industry Background...................................................................................................5
1.2. Organisation’s Background.........................................................................................5
2. Project Scope......................................................................................................................6
2.1. Statement of Issue Facing Organisation......................................................................6
2.2. Catalyst........................................................................................................................6
3. Research Methodology.......................................................................................................7
3.1. Secondary Data Collection..........................................................................................7
3.2. Primary Data Collection..............................................................................................7
3.3. Sampling......................................................................................................................7
3.4. Assumptions................................................................................................................8
4. Literature Review...............................................................................................................9
4.1. Costing Methods & Costing Techniques.....................................................................9
4.2. Cost Controls & Cost Reduction...............................................................................16
5. Discussion.........................................................................................................................19
5.1. Introduction...............................................................................................................19
5.2. Survey Study Result..................................................................................................19
5.3. Solution Area.............................................................................................................21
5.4. Limitations, Assumptions & Ethical Considerations................................................22
6. Recommendations.............................................................................................................23

Food Cost Accounting at Simply Indian Restaurant – Review and Proposal of Food Cost
Control Framework 3
6.1. Long Term Recommendations..................................................................................23
6.2. Short Term Recommendations..................................................................................23
7. References.........................................................................................................................25
8. Appendices........................................................................................................................27
Appendix A: Survey Questionnaire.....................................................................................27

Food Cost Accounting at Simply Indian Restaurant – Review and Proposal of Food Cost
Control Framework 4
Executive Summary
Restaurant industry faces critical challenges to sustain growth and experience financial
growth. In this context, the relevance of pursuing cost management to control business
operation costs, reducing the business expenses, and optimizing the operational costs is
highly relevant. The focus of this research is Simply Indian Restaurant located at Lower Hutt
Central in Wellington, New Zealand. One of the major concerns facing the restaurant is the
challenges it faced in cost management with an increasing cost levels affecting the
company’s profitability. The same is chiefly arising from the lack of effective accounting /
financial management across various components of its management. The same warrants a
detailed study and scope of this study are as follows, (i) Evaluate the concern areas at the
company which is causing the cost issues and ensuing impacts to the overall profitability, and
(ii) Propose recommendations based detailed study such that the company can enhance its
cost management practices. The study employs exploratory study to collect secondary data,
sruvey study to collect primary data and uses qualitative analysis to assess the data collected.
The overall data collected, results / findings, analysis, and recommendations are presented in
the report comprehensively.

Food Cost Accounting at Simply Indian Restaurant – Review and Proposal of Food Cost
Control Framework 5
1. Introduction
1.1. Industry Background
Restaurant business across globe represents a huge sector with immense significance to
the national economy. In addition restaurant industry represents a significant source for
employment. In this context, amongst the various factors that affect the superior business
performance, cost management to control business operation costs, reducing the business
expenses, and optimizing the operational costs represents an important scope for the
same. In specific, restaurant industry faces critical challenges to sustain growth and
experience financial growth. In this context, the relevance of pursuing cost management
to control business operation costs, reducing the business expenses, and optimizing the
operational costs becomes highly relevant.
1.2. Organisation’s Background
The focus of this research is Simply Indian Restaurant located at Lower Hutt Central in
Wellington, New Zealand. The restaurant focuses on offering Indian cuisine in a fine
dining setting and in a sophisticated manner. The restaurant is small scale and
successfully operated. The services are offered as dine in only without any phone
ordering services. The restaurant’s unique selling propositions are the vegetarian thalis (a
buffet based multiple food item package) and a non-vegetarian of the same.

Food Cost Accounting at Simply Indian Restaurant – Review and Proposal of Food Cost
Control Framework 6
2. Project Scope
2.1. Statement of Issue Facing Organisation
One of the major concerns facing the restaurant is the challenges it faced in cost
management with an increasing cost levels affecting the company’s profitability. The
same is chiefly arising from the lack of effective accounting / financial management
across various components of its management. The same warrants a detailed study and
scope of this study are as follows,
 Evaluate the concern areas at the company which is causing the cost issues and
ensuing impacts to the overall profitability
 Propose recommendations based detailed study such that the company can
enhance its cost management practices.
2.2. Catalyst
The primary motivation or catalyst for undertaking this study is that the management of
the restaurant have realized that any further continuation of cost level increases shall
cause significant irreparable losses to the restaurant. In this context, it becomes highly
essential for the restaurant to evaluate the study findings and pursue suitable actions.

Food Cost Accounting at Simply Indian Restaurant – Review and Proposal of Food Cost
Control Framework 7
3. Research Methodology
3.1. Secondary Data Collection
The secondary data that is collected pertains to the various concepts, theories, tools,
techniques, etc. that are discussed across various literature spanning text books,
academic / journal papers, public reports, other publications, etc. (Bryman & Bell, 2015;
Zikmund et al., 2013; Blumberg et al., 2014). The data so collected shall aid in
undertaking suitable analysis to address the specific objectives of this study.
3.2. Primary Data Collection
The primary data that is collected pertains to the internal operations and its perceptions
amongst the managers, employees and the management of the restaurant to determine the
cost management issues facing the restaurant (Bryman & Bell, 2015; Zikmund et al.,
2013; Blumberg et al., 2014). The same shall be undertaken by way of survey study that
shall chiefly use a likert scale based questionnaire to determine the area of concern such
that suitable proposals for resolutions.
Refer Appendix A for the questionnaire designed for this purpose.
3.3. Sampling
The sample of the study pertains to employees, managers and top management at the
restaurant and the overall people surveyed for this purpose is 10. The overall sampling is
made in a systematic manner with the participants identified based on their knowledge
and relevance to the specific cost accounting function of the company (Bryman & Bell,
2015; Zikmund et al., 2013; Blumberg et al., 2014).

Food Cost Accounting at Simply Indian Restaurant – Review and Proposal of Food Cost
Control Framework 8
3.4. Assumptions
The key assumptions of the study are as follows,
 The problem area is pre-determined to food cost accounting as informed by the
management of the restaurant
 The confirmation of the participants on their knowledge to the specific cost
accounting function of the company is taken as sole validation of the same.

Food Cost Accounting at Simply Indian Restaurant – Review and Proposal of Food Cost
Control Framework 9
4. Literature Review
4.1. Costing Methods & Costing Techniques
Costing methods refer to one which aids the organizations in computing the overall costs
concerning their production or else the services which offered from them (Zimmerman &
Yahya-Zadeh, 2011; Drury, 2013; Macintosh & Quattrone, 2010; Dierynck et al., 2012).
The various methods of costing are described as follows,
 Job Costing: This specific method can also be referred as job costing and the
costing method can be utilized across organizations that operate by way of
depending on job works (Zimmerman & Yahya-Zadeh, 2011; Drury, 2013;
Macintosh & Quattrone, 2010; Dierynck et al., 2012). There are certain
manufacturing based businesses that pursue job works and these are referred to be
job order unit. The key characteristic concerning the entities of these forms are the
fact they undertake production as per specific requirements / specifications of their
end consumers (Zimmerman & Yahya-Zadeh, 2011; Drury, 2013; Macintosh &
Quattrone, 2010; Dierynck et al., 2012). Each of the jobs shall be varied to that of
other. Production shall be only with respect to specific orders as well as there shall
be no pre-demand production. On account of the same, it shall be essential for
computing the overall costs pertaining each of the jobs as well as consequently the
system of job costing are applied (Zimmerman & Yahya-Zadeh, 2011; Drury,
2013; Macintosh & Quattrone, 2010; Dierynck et al., 2012). In the said system,
every job are treated to be separate as well as the job cost sheets are prepared for
finding out overall costs with respect to the job. The specific job cost sheets aid in
computing the overall costs concerning the said job by way of a phased approach
as well as lastly attains the aggregate cost for production (Zimmerman & Yahya-
Zadeh, 2011; Drury, 2013; Macintosh & Quattrone, 2010; Dierynck et al., 2012).

Food Cost Accounting at Simply Indian Restaurant – Review and Proposal of Food Cost
Control Framework 10
 Batch Costing: The method of batch costing refers to costing that is utilized across
thee firms wherein the production activities are undertaken in a manner that is
continuous (Weiss, 2010; Chen et al., 2011; Kama & Weiss, 2013; Mundy, 2010).
Each of the units arising from the same are uniform across all of the respects as
well as the production tasks are undertaken before the demand for the same, that
is, anticipation with respect to demands (Weiss, 2010; Chen et al., 2011; Kama &
Weiss, 2013; Mundy, 2010). A single batch of the production process comprises
of units that are produced starting from time the machineries are set for the
specific time while it shall be closed down for the maintenance activities (Weiss,
2010; Chen et al., 2011; Kama & Weiss, 2013; Mundy, 2010). To take an
example, in case production commences during first of a month and machineries
are shut down with respect to maintenance 5 months since then, the total volume
of unit that are produced during this 5 month period shall represent the size of a
single batch (Weiss, 2010; Chen et al., 2011; Kama & Weiss, 2013; Mundy,
2010). The overall costs which are incurred in the said period shall be divided
using the total amount of the produced units as well as the costs of unit shall be
suitably worked out. The firms that undertake the production of consumer goods
akin to washing machines, air-conditioners, television, etc. make use of batch
costing (Weiss, 2010; Chen et al., 2011; Kama & Weiss, 2013; Mundy, 2010).
 Process Costing: Certain types of products like that of chemicals, sugar, etc.
comprise continuous form of production processes and thus process costing
approach is applied for working out overall costs of the production (Ward, 2012;
Maskell et al., 2011; Cohen & Zarowin, 2010; Kallunki et al., 2011). The
significance of a continuous process refers to the aspect that input which are
introduced within a process shall travel all through a continuous process prior to

Food Cost Accounting at Simply Indian Restaurant – Review and Proposal of Food Cost
Control Framework 11
the production of the finished products (Ward, 2012; Maskell et al., 2011; Cohen
& Zarowin, 2010; Kallunki et al., 2011). This output from the first process shall
then become an input for the subsequent process as well as after the output from
this subsequent process becomes available it shall become input for the next
process in sequence (Ward, 2012; Maskell et al., 2011; Cohen & Zarowin, 2010;
Kallunki et al., 2011). If there are no further process in the chain, that last process
shall lead to an output which is naturally the finished product. In case of process
costing, the cost each process is computed and the cost at per unit level is also
computed by way of dividing overall aggregate cost by using total number of said
units (Ward, 2012; Maskell et al., 2011; Cohen & Zarowin, 2010; Kallunki et al.,
2011). Industries like that of chemicals, edible oil, sugar, etc. represent examples
for continuous form of production processes as well as utilize process costing
(Ward, 2012; Maskell et al., 2011; Cohen & Zarowin, 2010; Kallunki et al., 2011).
 Operating Costing: This form of approach to costing is utilized within the service
sector for working out overall costs of the services that are offered to end
consumers. To take an example, the method of operating costing are utilized
within power generating facilities, hospitals, transportation services and many
other (Ward, 2012; Maskell et al., 2011; Cohen & Zarowin, 2010; Kallunki et al.,
2011). In this approach, cost sheets are prepared for computing the overall costs
and the same is divided using cost units with respect to computing cost on a per
unit basis (Ward, 2012; Maskell et al., 2011; Cohen & Zarowin, 2010; Kallunki et
al., 2011).
 Contract Costing: The specific method of contract costing can be noted to be
utilized within construction industry for working out overall costs of the contract
undertaken (Ward, 2012; Maskell et al., 2011; Cohen & Zarowin, 2010; Kallunki

Food Cost Accounting at Simply Indian Restaurant – Review and Proposal of Food Cost
Control Framework 12
et al., 2011). To take an example, costs for constructing bridge, residential
complex, commercial complex, highways, and other such infrastructure are
worked out through the use of the said method concerning costing (Ward, 2012;
Maskell et al., 2011; Cohen & Zarowin, 2010; Kallunki et al., 2011). In essence,
contract costing can said to be in actual similar with that of job costing and the
sole difference being that a single construction job could take many months /
years for completion in contract costing whilst in case of job costing, the
individuals jobs are usually of shorter duration (Ward, 2012; Maskell et al., 2011;
Cohen & Zarowin, 2010; Kallunki et al., 2011). In case of contract costing, with
each of the contracts taking longer period to be completed, question concerning
the computation of profit levels need to be suitably resolved by way of using the
methods that are accepted and well defined (Ward, 2012; Maskell et al., 2011;
Cohen & Zarowin, 2010; Kallunki et al., 2011).
As against a costing method, costing technique refers to techniques that aid any firm for
presenting their data in specific manner such that it facilitates the overall decision making
in addition to cost controls / cost reductions (Ward, 2012; Maskell et al., 2011; Cohen &
Zarowin, 2010; Kallunki et al., 2011). The various techniques with respect to costing are
discussed as follows (Ward, 2012; Maskell et al., 2011; Cohen & Zarowin, 2010;
Kallunki et al., 2011),
 Marginal Costing: The technique of marginal costing is on the basis of the
assumptions that overall costs for production could be classified as fixed as well
as variable. The fixed costs continue to same despite the various changes within
the volumes of production whilst relevant variable costs shall vary with respect to
the levels of production, that is, they shall increase in case overall production

Food Cost Accounting at Simply Indian Restaurant – Review and Proposal of Food Cost
Control Framework 13
increases, and decrease in case production decreases (Ward, 2012; Maskell et al.,
2011; Cohen & Zarowin, 2010; Kallunki et al., 2011). The variable cost for each
unit shall at all times continue to be same. In the said technique, variable costs
shall be solely taken in consideration whilst computing the cost of production.
Fixed costs shall not be absorbed within the specific production units (Ward,
2012; Maskell et al., 2011; Cohen & Zarowin, 2010; Kallunki et al., 2011). They
shall be written off towards the relevant costing profit & loss accounts. The
rationale behind the same concerns the fact that fixed costs in essence are
periodical costs and thus need not be contained within the production (Ward,
2012; Maskell et al., 2011; Cohen & Zarowin, 2010; Kallunki et al., 2011).
Further they shall be variable over on an each unit basis, and thus there are no
equitable form of basis towards charging them over to products. The said
technique can be used effectively with respect to decision making across the
domains akin to making or buying decisions, optimization of the product mix,
analysis of the key factors, fixation of the selling prices, rejection / acceptance of
the export offer, as well as various other domains (Ward, 2012; Maskell et al.,
2011; Cohen & Zarowin, 2010; Kallunki et al., 2011).
 Standard Costing: The standard costs refer to costs that are predetermined with
respect to overheads, labour as well as materials. Even though these costs could be
pre-determined, essentially they are being computed on the scientific basis
through the process of undertaking technical analysis (Ward, 2012; Maskell et al.,
2011; Cohen & Zarowin, 2010; Kallunki et al., 2011). They shall be computed
over all of the elements concerning costs like that of overheads, labour as well as
materials. The core objective concerning fixation relating to standard costs are in
having the benchmark over which actual performances could be effectively

Food Cost Accounting at Simply Indian Restaurant – Review and Proposal of Food Cost
Control Framework 14
compared. The same shall mean that actual costs need to be compared to that of
standards. Essentially, these differences are referred to “variance” (Ward, 2012;
Maskell et al., 2011; Cohen & Zarowin, 2010; Kallunki et al., 2011). In case
actual costs shall be higher as compared to standard, overall variance can be stated
to be “adverse” whilst in case actual costs shall be lesser as compared to standard,
variance can be stated to be “favourable". Adverse form of variances shall be
analysed and the underlying reasons shall be suitably determine (Ward, 2012;
Maskell et al., 2011; Cohen & Zarowin, 2010; Kallunki et al., 2011). The
favourable variances shall in addition be suitably analysed for determining the set
of reasons that lie behind this. Thus standard costing represents a significant
technique with respect to cost controls as well as its reduction (Ward, 2012;
Maskell et al., 2011; Cohen & Zarowin, 2010; Kallunki et al., 2011).
 Budgets & Budgetary Control: A budget can be referred as the quantitative or else
the monetary form of statement that is prepared before any specific / defined time
period with respect to policies for that specific period towards the purposes of
attaining the particular objective (Ward, 2012; Maskell et al., 2011; Cohen &
Zarowin, 2010; Kallunki et al., 2011). In case one analyses the said definition, it
shall become clear that budgets represents the statement that could either be in the
quantitative or else monetary form, or else, both. To take an example, any
production budget could be produced in the quantitative format illustrating the
specific target productions and it could in addition be suitably prepared over the
monetary terms illustrating expected costs for production (Ward, 2012; Maskell et
al., 2011; Cohen & Zarowin, 2010; Kallunki et al., 2011). Some of the budgets
could be suitably prepared solely in the form of monetary terms like for example
the cash budget illustrating estimated receipts as well as payments over the

Food Cost Accounting at Simply Indian Restaurant – Review and Proposal of Food Cost
Control Framework 15
specific period could be appropriately prepared over monetary terms alone. The
other feature concerning budget is that the same shall at all times be prepared
before the time period defined and the same means budget can always be prepared
with respect to future period as well as for the defined future (Ward, 2012;
Maskell et al., 2011; Cohen & Zarowin, 2010; Kallunki et al., 2011). To take an
example, the budget could be prepared over the subsequent six or else twelve
months, or else, even for a one month period, and yet the specific time period
needs to be specific and never be vague. One amongst the significant element
concerning budgeting refers to the fact that the same lays down objectives that are
to be attained over a defined period in time as well as for attaining the relevant
objectives, the range of policies which are planned to be undertaken shall be
reflected within the said budget (Ward, 2012; Maskell et al., 2011; Cohen &
Zarowin, 2010; Kallunki et al., 2011). Budgetary controls involve the preparation
of required budgets as well as a continuous form of comparison between the
actual outcomes with that of budgeted values such that possible corrective action
could be undertaken. To take an example, while the production budgets are
prepared, overall production targets shall be included / presented within it for the
specific period (Ward, 2012; Maskell et al., 2011; Cohen & Zarowin, 2010;
Kallunki et al., 2011). Post the ending of this period, actual production outcomes
shall be compared to the budgeted values and deviation between them are assessed
such that suitable and related corrective actions could be undertaken. Budget as
well as budgetary control represent one amongst the highly significant techniques
for costing that is used with respect to cost controls as well as towards
performance evaluations. The overall success pertaining to this technique shall
depend over several set of factors like that of support offered by top management,

Food Cost Accounting at Simply Indian Restaurant – Review and Proposal of Food Cost
Control Framework 16
participation of the employees as well as co-ordination within overall organisation
(Ward, 2012; Maskell et al., 2011; Cohen & Zarowin, 2010; Kallunki et al., 2011).
4.2. Cost Controls & Cost Reduction
One amongst the very important functions concerning cost accounting refers to cost
controls as well as cost reduction (Ostergren & Stensaker, 2011; Becker et al., 2013; Potts
& Ankrah, 2014; Banker & Byzalov, 2014). In essence, cost control shall imply that
various actions undertaken for the purpose of ensuring that overall costs shall not rise
over the specific levels whilst cost reduction shall mean the reduction of prevailing costs
for production (Ostergren & Stensaker, 2011; Becker et al., 2013; Potts & Ankrah, 2014;
Banker & Byzalov, 2014). Both of the concepts need detailed discussion.
Cost controls as described earlier refer to the maintenance of expenses within the pre-
defined controls / limits. Cost control can be stated to follow following features: (i) cost
control refers to a continuous form of process and the same encompasses setting of
standards as well as budgets to decide the targets pertaining to varied set of expenses as
well as constant comparisons amongst the actual outcomes, budgeted value and the
reference standards, (ii) cost controls encompass the formation of the responsibilities
centre possessing authorities / responsibilities that are clearly defined, (iii) It shall in
addition involve timely reports illustrating cost control in the form of variances amongst
the standards as well as the actual performances, (iv) motivating as well as encouraging
the employees for accomplishing budgetary goals shall in addition form the essential
element of the cost control activities, and, (v) In actual cost controls shall not just refer to
monetary limits over cost but the same in addition shall encompass optimum form of
utilization concerning resources, or else, the performance of same job with same costs

Food Cost Accounting at Simply Indian Restaurant – Review and Proposal of Food Cost
Control Framework 17
(Ostergren & Stensaker, 2011; Becker et al., 2013; Potts & Ankrah, 2014; Banker &
Byzalov, 2014).
In terms of cost reduction, it can be stated that cost control can also be the means /
attempts for reducing the costs. To take an example, in case prevailing costs shall be NZD
1,000 for one unit, suitable attempts could be undertaken for reducing in bringing it down
to lesser than NZD 1,000. In undertaking the same, fully charged efforts needs to be done
for the attainment of the target. The objective for cost reduction could be attained through
two different ways: One of them involves the reduction of costs at per unit level, and
other one is to increase the productivity. The reduction of wastages, enhancing overall
efficiency, seeking out alternative materials, as well as the constant drive for reducing the
costs, could impact the cost reduction (Cinquini & Tenucci, 2010; Caglio & Ditillo, 2012;
Brigham, 2014; Skærbæk & Tryggestad, 2010).
The varied set of tools / techniques that are widely employed for reduction of costs
include the following: (i) value engineering / value analysis, (ii) setting the standards to
all components of the costs as well as constantly comparing the actuals to the standard,
and analyse the computed variances, (iii) work studies, (iv) job evaluations / merit rating,
(v) quality controls, (vi) usage of the techniques similar to economic order quantity, (vii)
classification / codification, (viii) standardization / simplification, (ix) inventory
management, (x) benchmarking, (xi) standardization, and (x) business process
reengineering (Cinquini & Tenucci, 2010; Caglio & Ditillo, 2012; Brigham, 2014;
Skærbæk & Tryggestad, 2010).

Food Cost Accounting at Simply Indian Restaurant – Review and Proposal of Food Cost
Control Framework 18
Cost management is not defined any specific manner. Although the same could be stated
as an activity to identify, collect, measure, classify as well as report the information
which are useful for managers as well as various other internal users over cost
ascertainment, its planning and controlling, and affiliated decision making (Cinquini &
Tenucci, 2010; Caglio & Ditillo, 2012; Brigham, 2014; Skærbæk & Tryggestad, 2010).

Food Cost Accounting at Simply Indian Restaurant – Review and Proposal of Food Cost
Control Framework 19
5. Discussion
5.1. Introduction
Cost management essentially aims in producing as well as providing information for the
internal users as well as the personnel who are working within specific organization.
Effective management pertaining to costs makes any organization to become much
stronger, be more stable as well as aid in enhancing overall potentials concerning the
business (Cinquini & Tenucci, 2010; Caglio & Ditillo, 2012; Brigham, 2014; Skærbæk &
Tryggestad, 2010). An organization seeks out for the system which shall monitor
complete set of economic impacts pertaining to business, over the acquisition /
consumption of the resources. The same offers the supply of required information to top
management aiding in the exploration of various set of alternatives through which
effectiveness in cost could be fully enhanced (Cinquini & Tenucci, 2010; Caglio &
Ditillo, 2012; Brigham, 2014; Skærbæk & Tryggestad, 2010). In addition, cost
management shall also aid in the optimization of the resources that shall enhance
efficiency at an overall in an organization as well as aid the said firm in attaining its
objectives.
5.2. Survey Study Result
Table 1 – Survey Result
Concern Rating Yes No Total
Participants
Survey Question
Did the staff cooperate and
greet you well? 8 2 10
Was the service delivery and
warmth of staff up to the
mark?
9 1 10
Would you recommend the
restaurant to your friends? 7 3 10
Are you happy with the
ambience of restaurant? 8 2 10

Food Cost Accounting at Simply Indian Restaurant – Review and Proposal of Food Cost
Control Framework 20
Did you get the order
delivered on time? 7 3 10
Were you treated well by our
staff? 8 2 10
Did you find the taste of food
basis your expectation 9 1 10
Will you come here again to
dine? 7 3 10
Was the staff behavior
satisfactory? 8 2 10
Do you feel the cost levels at
the restaurant are justified? 7 3 10
The assessment of the survey results indicate that the restaurant core concern areas
pertain to cost management function and the affiliated cost accounting factors. The Bar
graph provided below illustrates the costing for the ingredients for the restaurant. The cost
per gram is calculated for the ingredients

Food Cost Accounting at Simply Indian Restaurant – Review and Proposal of Food Cost
Control Framework 21
Lemon Citrus Tart
Lamb Lion
Pancetta
Chives Fresh
Brocolli
Snow Pea
Herbs
Ice Cream Coconut
Chocolate Fresh
Rasberry Fresh
Artificial colors
Artifical Flavours
Aspartame
Azodicarbonamide
Benzoates in food
Benzoyl peroxide
Bleached flour
Bromated flour
Brominated vegetable oil (BVO)
BST (bovine somatotropin)
Sorbic acid
Sucralose
Sucroglycerides
Sucrose polyester
Sulfites (sulfur dioxide)
Sodium diacetate
Sodium glutamate
Sodium nitrate/nitrite
Sodium propionate
Sodium stearoyl-2-lactylate
Chicken
Lamb
Goat
0 2 4 6 8 10 12 14
Cost Per Gram
Cost Per Gram
Bar Graph Depicting the food costing rate for the restaurant
5.3. Solution Area
The key solution area determined based on the survey results and the secondary data
collection concerns the availability of relevant cost / cost accounting data, the overall
reliability / validity of the same, and finally, and the timeliness of these data such that the

Food Cost Accounting at Simply Indian Restaurant – Review and Proposal of Food Cost
Control Framework 22
management can undertake suitable actions on an immediate basis to address any new
concerns that arise to affect the cost levels of the company.
The solution domain identified is presented in a visual manner under Figure 1 below,
Figure 1 – Solution Framework
5.4. Limitations, Assumptions & Ethical Considerations
The limitations and assumptions have been discussed in detail across the earlier sections.
The key consideration with respect to ethical undertaking of the research is relevant to
this study. The survey study was undertaken in an ethical manner ensuring that the
participants were fully aware of the study’s objectives, their consent were obtained prior
to undertaking the survey and more importantly the confidentiality of the participants was

Food Cost Accounting at Simply Indian Restaurant – Review and Proposal of Food Cost
Control Framework 23
ensured at all costs. In addition, the secondary data collection was also legally and duly
undertaken with due citation specified for all the data collected. Overall, the research
study was undertaken with compliance to all terms, conditions, and ethical guidelines
issued by the University for undertaking research studies.
6. Recommendations
6.1. Long Term Recommendations
Based on the study results, findings and overall analysis, the following long term
recommendations are made to Simply Indian Restaurant,
 Ensuring the cost objectives and cost management principles of the company are
aligned to the broader organizational strategic goals, its vision and mission of the
restaurant.
 Employing the services of reputed third party cost consultants to undertake
periodical audits to determine issues, concerns, etc. with respect to its cost
management practices.
6.2. Short Term Recommendations
The immediate actions proposed to the restaurant to ensure that its food cost accounting
and its management are undertaken effectively shall include the following,
 Designing, planning and implementing an internal management information
systems team that shall be focussed on developing metrics for tracking cost
management and cost level effectiveness / efficiencies, track them periodically,
and escalate key variances / deviations to management for immediate actions.

Food Cost Accounting at Simply Indian Restaurant – Review and Proposal of Food Cost
Control Framework 24
 Develop a continual budgeting and review process wherein the budgeted costs are
compared with actual expenses on a weekly / monthly basis to ensure the
restaurant has better control over its costs
 Finally, develop and initiate suitable cost reduction practices by undertaking
detailed review of its supply, service delivery, etc. cost structures.

Food Cost Accounting at Simply Indian Restaurant – Review and Proposal of Food Cost
Control Framework 25
7. References
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8. Appendices
Appendix A: Survey Questionnaire
1. Did the staff cooperate and greet you well?
Yes No
2. Was the service delivery and warmth of staff up to the mark?
Yes No
3. Would you recommend the restaurant to your friends?
Yes No
4. Are you happy with the ambience of restaurant?
Yes No
5. Did you get the order delivered on time?
Yes No
6. Were you treated well by our staff?
Yes No
7. Did you find the taste of food basis your expectation
Yes No
8. Will you come here again to dine?
Yes No

Food Cost Accounting at Simply Indian Restaurant – Review and Proposal of Food Cost
Control Framework 28
9. Was the staff behaviour satisfactory?
Yes No
10. Do you feel the cost levels at the restaurant are justified?
Yes No