ETH557 Pricing Concerns
Write a concise response between 500 to 700 words to the text-based questions from Ethics in Accounting: A Decision-Making Approach:
- Chapter 6, Exercise 29 (as modified)
You are a professional accountant and are working with a client who has noble ideas and great food but has not managed his costs well. With the high overhead and opportunity costs, the fully allocated cost of cheesecake and specialty desserts are more than half the sale price. With cash being scarce but also a reputation to uphold, dessert sales have become a critical issue. You have created a turnaround plan that includes some of the highly profitable desert lines. Giuseppi’s Italian Restaurant will sell its delicious, but expensive, strawberry cheesecake for half-price after 10 p.m. because they will have to throw it away as stale if it remains unsold.
Food servers now are instructed to offer cheesecake to customers at full price. If they hesitate or complain about being “too full for dessert,” the food servers then are instructed to offer the cheesecake at half-price. Under your recommended pricing and sales plan, food servers are paid commission only on full price sales. Anyone caught cheating will be terminated for cause.
Cite your research from the text, at least one suggested resource, at least one Accounting industry publication, and any additional professional or regulatory guidance. Professional or regulatory guidance should come directly from the appropriate site and not from the textbook.
Evidence of support and logic in good writing drives the brief’s effectiveness and therefore the grade.
Format your response consistent with APA guidelines. APA standards are in effect for Master’s Level Two as supported within the CWE.
Submit the final copy to Turnitin. Make necessary corrections after running the report.
Click the Assignment Files tab to submit your assignment as a Microsoft® Word document. The assignment files are: Essay and Turnitin Report