Nicole Owns and Operates the Foothill Grill, a Small Local

question 16

Essay

Nicole owns and operates The Foothill Grill, a small local breakfast shop. She's hired you as a consultant to help redesign the shop's accounting information system. Nicole has financed the restaurant's operations with a combination of her own money, investments from friends and family and bank loans. She currently employs six staff in addition to herself: two cooks, three servers and a custodian.
-You explain to Nicole that you'll be organizing your work in terms of the Grill's business processes. She's familiar with the Sales/collection and acquisition/payment processes, but hasn't heard of any others. Identify and describe three other business processes you should include as part of your work.

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Definitions:

Intangible Asset

An asset that lacks physical substance but is still identifiable and provides economic value to the business, such as patents or trademarks.

Amortization

The process of spreading the cost of intangible assets over their useful life, or gradually paying off debt through a series of fixed payments.

Research Costs

Expenses associated with activities undertaken to discover new knowledge, develop new products or processes, without assurance of commercial success.

Expensed

Costs that are charged against income in the period they are incurred, rather than being capitalized and amortized over time.