Question

НАМЕ . Three years ago, Ace Aldridge completed his degree in accounting The economy was ln a depressed state at the time, and Ace managed to get an offer of only $20,000 per year es a bookkeeper. In addition to its relatively low pay, this job had limited advencement potential. Since Aldridge was an enterprising and embitious young man, he declined this offer and suarted a business of his ovra. He was convinced that because of changing lifectyles, a drive-through coffee establishment would be profitable. He was able to cbtain backing from his parents to open such an establishment close to the industrial park area in towm. Aldridge named his business Ace's Express and decided to sell only two type types of coffee; regular coffee and expresso. As Aldridge had expected, the Ace's Express was very well received. Within three years, Ace had added another outlet north of town. He left the day-to-day management of each site to a manager and focused his own attention on overseeing the entire enterprise. He also hired an assistant to do the record keeping and to perform selected other chores. What actions should Aldridge take to create the business? What expenses will be incurred from inception to the opening day? What are the major tasks Ace has to undertake in managing the Ace's Express? What are the major costs of operating Ace's Express? . Ace would like to monitor the performance of each site manager. What measure(s) of performance should he use? .

Answer 1

1)Actions to create the business

• To arrange funds to establish business
• Planning of where to establish business,sources of fund
• Capital investment - purchase of equipment,Plant & machinery,building

Expenses incurred from inception to opening day

• Cost of equipment,Building
• Promotion expense
• Financial Analyst(Make decision for investment)

2)Tasks to manage ACE's express

• Place order for purchase of inventory,cutlery
• Day to day recording transactions(Bookkeeping)
• Managing employees salary
• Maintain control over quality of products or services provided by Ace Express

Operating expenses

• Employee salary
• Depreciation
• Repair of Equipment
• Maintenance expense

3)Performance measure

• ACE should visit all sites in scheduled manner.
• ACE can take feedback from workers at site.
• By using technology,ACE can monitor performance of all sites manager.