Question

Managerial Accounting Scenario 2

The top management of a fast-food hamburger chain is considering installing point-of-sale machines that will allow customers to pay for food with an automated-teller-machine card. Previously, the restaurant has accepted only cash.

What information could the management accounting department supply to assist management with this decision?

As the manager, I believe today we live in a fast pace society and like most grocery stores that have the self check out which customers love because they get in and out quick. I think this will be the same way with the fast-food hamburger chain. Most people use credit or debit card today rather than cash. I would need to ask the management accounting department how many customers they serve a day on average, how many would rather use a card. I would ask the cost of installing the point of sale machine and also how much money will the company make by serving more customers in a day. Customer will come more often because of the quick service and will enjoy the convenience.

NOW THE QUESTIONS IS

Do you think it would be necessary to then cut back on workers if the point of sale machines are essentially making you more money in the long run or keep the same amount of staff and add in the point of sale machines

Answer 1

Since the management has decided to install the point of sales machines and due to customer satisfaction the machines installation would be successful in long run.

Question: Would number of staff decreased or unchanged by installing Point of sales machines

Decision : Being part of team of management accounting, i would analyse the work reduced of the present staff by installing such machines. For e.g need of delivery staff is no more required. But the staff which prepares hamburger should remain unchanged or infact increased if the demand for hamburgers increases.

Thus, staff which was responsible for delivering the hamburgers from restaurant to delivery place or delivering at table (as now there is no need of such persons as the delivery is transformed as self service ) is no more required.

We may remove such ppl from job thereby cutting the costs or may recruit for some alternative tasks.

Decision: Cut back on workers by installing PoS machines.

Do give your feedback!! Happy learning :) :)