Explain How You Will Identify and Correct a Pour Cost

question 19

Essay

Explain how you will identify and correct a pour cost of 25.6% when the budget requires a pour cost of 22.5%.Identify what may have caused the pour cost to be this high and corrective action to bring it into line with the budget.

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Definitions:

Accrued Revenues

Income earned but not yet received or recorded at the end of an accounting period, reflecting revenues for services performed or goods sold but not yet billed.

Asset Accounts

Accounts that record the value of everything a company owns and uses to generate revenue.

Liability Accounts

Accounts on a company's balance sheet that represent what it owes to others, such as loans, accounts payable, mortgages, deferred revenues, bonds, warranties, and accrued expenses.

Trial Balance

A financial report that lists all the active accounts and their balances at a certain point in time, used to verify the equality of debits and credits in the accounting system.