Question 1:
Explain the various stages of the product cycle and explain why it is necessary to follow the procedures regarding this cycle.
Question 2:
(i) Explain the formula S = FC + VC + SFC + P. Support your answer with relevant examples.
(ii) How will you use this formula to ensure that your food & beverage operations are on the right track?
Question 3:
‘In beverage costing, one of the basic principles of pricing is: the higher the initial cost, the lower the mark up'. With supportive arguments and examples, explain how and why you may be in agreement or disagreement with this statement.