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Discuss some of the issues that you must recognize before evaluating your shift managers’ performance at the end of the month and comparing it against the flexible budget you have prepared.
01 / 10 / 2021
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- As the manager of a Starbucks retail store, you are responsible for
preparing a monthly flexible budget. You have developed standard costs
for every item on the menu, including estimates of the labor required to
prepare each coffee item. At the end of the month, you have a detailed
report on all items sold by each shift during the month, as well as the
coffee and all other ingredients and paper goods consumed during the
month.
- Discuss some of the issues that you must recognize before evaluating
your shift managers’ performance at the end of the month and comparing
it against the flexible budget you have prepared.