Year after year, the AsYouLikeIt Bistro handles a large volume of business at lunch. The manager attributes the operation's success to radical menu changes every three months. Many of the new menu items result from suggestions made by guests. Which of the following sources of information offers the manager the most reliable basis for developing cost standards?

Question

Year after year, the As­You­Like­It Bistro handles a large volume of business at lunch. The manager attributes the operation's success to radical menu changes every three months. Many of the new menu items result from suggestions made by guests. Which of the following sources of information offers the manager the most reliable basis for developing cost standards?

Quizplus · Accepted Answer

In-house standard costs are the most reliable basis for developing cost standards because they are tailored to the specific operations and ingredients used by the As-You-Like-It Bistro. Using industry averages, past financial statements, or operating budgets may not accurately reflect the unique characteristics of the restaurant's menu and operations. Guests' suggestions may also be considered, but they may not provide a complete picture of the cost and feasibility of new menu items.

Year After Year, the As­You­Like­It Bistro Handles a Large Volume

Year After Year, the AsYouLikeIt Bistro Handles a Large Volume