Study Of The Vat System In Ethiopia Finance Essay

Study Of The Vat System In Ethiopia Finance Essay Government collects revenue from different types of sources to invest for public services like education, health, road and infrastructure distributes equally to the public. This revenue will be the one in which it levies from different income is called a tax. A tax is a blood vessel of a country for development, most of developed countries their tax harmonies are very attractive and strong, the people are well known about the tax what and why you are pay, if you are not pay you accept like you didnt accomplished your duty even your right. How ever in most Sahara counties like Ethiopia the people do not well understand about the necessity of the tax what and why you are pay, thats why the fraudulent and smugglers would be many and high developing country. Hence the problem of tax collection and assessment in Ethiopia is the gap between the taxpayers willingness to pay tax is as a major with different implementation and other problems by the tax collectors. In general in Ethiopia, where the awareness of taxpayers, the culture of paying taxes and the capacity of tax administrators appear poor. The tax system should be balance the economic activity and expected the people on the ability to pay a tax in proportion to their level of income. From the broad concepts of taxation the tax should be divided in to two major groups. These are direct and indirect tax, from these indirect tax the one in which highly Comprehensive that includes producers, wholesalers and retailers is the value added Tax (VAT). The value added tax (VAT) is a new tax system introduced in Ethiopia since 2003 as a Replacement to sales tax.This tax collects from domestic transaction and importation of goods. Where this tax is replaced the sales tax the assumption was the sales tax does not collect on added value, the value added tax minimizes the damage that may be caused by attempts to avoid and evade the tax and helps to ascertain the profit obtained by the tax payers and the tax initiates saving and investment because the tax is levied on consumable goods and services and does not tax capital and enhance economic growth and improves the ratio relationship between gross domestic product and government revenue. And has a proclamation, cites as a proclamation No. 285/2002. This paper will state the current main issues of VAT administration like organizational structure, staffing and training, Tax Payers Identification and Automation, invoicing and book keeping Requirements, controlling of filing and payment, Audit of VAT, Refunds management, penalties and cost of administration and compliances with its strength and weakness in Ethiopias as follows 2. OBJECTIVE OF THE STUDY How it works the Administration and compliance of VAT system in Ethiopia with its positive and negative during implementation of the current system and explains what compliance risks there are and why and how the risks occur over all those problems will be discussed and further the solutions shall be recommended in the report of study. 3. METHODOLOGY OF THE STUDY The study is gathered from different secondary data of annual reports and from assessment of different researches of administration of VAT system In Ethiopia by different Authors. 4. SCOPE OF THE STUDY The study is limited on the current of VAT administration in Ethiopian and compliance risks With its strength and weakness in which applies will be generalized. 5. DEFINITIONS A value added tax is a modern tax system and broad based .It replaces the sales tax, have two rates 15% and 0% with exemptions of the tax. The threshold is based on the annual sales of goods and services above 500,000 Ethiopia birr. Have two types of registration that is obligatory and voluntary registration, the voluntary registrants are registered when 75% their sales are supplied for VAT registered. The reports are monthly which provides in the declaration format whether it credit or nil. Any taxpayers who are not registered for VAT automatically payable to turn over tax (TOT). The exemption in VAT also applies in TOT. 6 .ANALYSIS (MAIN BODY) Value added tax in Ethiopia introduce in the year 2003 cited as proclamation No. 285/2002 which replaces the sales tax with the assumptions mentioned in the introduction part. The current Ethiopia Revenue and Customs Authority (ERCA) was Federal Inland Revenue Authority (FIRA) before 2008. During the period of FIRA the VAT would introduced and implemented in our country and still exercises after merging of FIRA and Customs Authority. The administration of VAT includes organizational structure, staffing and training, Tax Payers Identification and Automation, invoicing and book keeping Requirements, controlling of filing and payment, Audit of VAT, Refunds management, penalties and cost of administration all these activities are pertain to how applies and affects the government revenue and strategy properly will be describe as follows: 6.1 Organizational structure, staffing and training Ethiopia Revenue Authority should be taken an organizational structure for VAT to be implemented through the branches of the Authority and the staff recruited and trained during the preparation of the VAT introduced. Hence due the complication of the system in the Ethiopia case a special VAT unit in FIRA was setting up. Along this line, there were efforts to design the organization structure and to determine the number of staff to be trained and deployed. Some have been taken from the ex-sales tax unit, some have gone from the tax reform program and the Ministry of Revenue and some have been newly recruited. At present, the newly introduced Value Added Tax is administered by a newly established department located at the Mexico square and some branches in the country and by the Ethiopian Revenue and customs Authority. The new department in ERCA is answerable to the General Manager. The staffs are graduates of accounting, economics and the management profession. The organo-gram and staff assignment is depicted in the following diagram. General Manager ERCA Tax Payers registration and Education Division (7) VAT DEPARTMENT Head (5) VAT Administration (2) Revenue Collection and Enforcement Assessment and Audit Division Revenue Accounts and Consolidation Diagram 1:- Organo- gram of the VAT Department By: Arega Hailu Teffera June/2004 Even though, the VAT is computerized, considering the current and future challenges, the VAT department requires additional personnel in all areas- taxpayer education and service, accounting and collection, enforcement and audit. Efforts currently underway within the Ministry and ERCA to strengthen the VAT administration, to improve service delivery, training of staff should continue to address the shortfall encountered. Specially, the administration should focus in strengthening its audit and enforcement wings. 6.2 Tax Payers Identification and Automation Taxpayer Identification Number (TIN) and VAT SIGTAS were implemented during 2000-2003. These systems have been operational by the FIRA and regional states and city administrations revenue authorities through country-wide network As earlier described the system introduced during Federal In land Revenue Authority where it is Ethiopian Revenue and Customs Authority (ERCA). The system is an important for efficient and effective tax and customs administration. Any taxpayer has only one identification number; this will be used for VAT purpose, for with holding tax, for property tax e.t.c. In our country case taxpayers couldnt used different identification number. Except The trade license number issued by Ministry of Trade and Industry Automation of VAT administration commenced with a simple software developed by a local IT firm. In an attempt to deploy better software that integrates the different functions and processes of VAT administration, the government entered an agreement with a Canadian firm known as CRC-SOGEMA in April 2003. The software development project, VAT SIGTAS, was finalized and made operational at the VAT Department during February 2004. Later on, the new software rolled out to the regional branches of the ERCA. It was also made operational in four regional states and two city administration revenue authorities following the delegation of VAT administration. Large taxpayers, started applying VAT SIGTAS in October 2005 upon the decision of the tax authority to administer all taxes of large taxpayers under one office. Previously the large taxpayers used to settle their VAT obligations at the VAT Department. The proper implementation of SIGTAS all taxes would help realize the following anticipated benefits of the project: increased revenues and enhanced control, better service to taxpayers, standardize practices throughout operational departments, reduction of non-value adding activities, real-time management (reminders, remittances, etc.), and Integrated management of all taxes (especially for audit). The regional and city administration tax offices are also using the new system for their VAT operations with the previous VAT functionalities provided unchanged. Efforts are underway to deploy SIGTAS all taxes, with certain modifications, in all regional states and city administrations. The CRC-SOGEMA has already conducted requirements study. 6.3 invoicing and book keeping Requirements Is a very important for issuance of invoices during transaction of VAT system these invoices are printed by registered printing press after getting approval from ERCA. The invoices are separately printed for taxable and exempted transactions. In addition to the printing of invoice recording are mandatory for every VAT registered and required separate of taxable invoice and exempted. The VAT proclamation stipulates that VAT registrants should keep records of account for at least 10 years. However, due to lack of tax administrators follow-up and control, lack of awareness among the society and the prevalence of poverty.these rules are not applied perfectly as to the law required many problems faced with getting invoices, using duplicated invoices, lack of consistency in using invoice, most business holds two books ;one for tax Authority and for Banks . usually the understated income holds book for tax Authority and the over stated book would be for Banks, Do not use invoices approved by the Authority, dealing with buyer to issue the lower price in the invoice , also issue fraudulent invoices using invented VAT numbers of their own and collect VAT for their own e.t.c. These will be paralyzing the function of revenue as a whole. In order to solve this problem of invoicing the ERCA gets the expiriance from Latine America to be used the electronical cash registered at retailer on a net work with the SIGTAS. 6.4 controlling of filing and payment According to proclamation No. 285, Article 26/1, every registerd person is required to file VAT return with ERCA for each accounting period and to pay the tax for accounting period by the deadline for filling the VAT return. Article 26/2 , the VAT return for every accounting period shall be filled no later than the last day of the calendar month following the accounting period, where as VAT on taxable imports is collected at Customs and made by C.P.O automatically. The VAT liability is computed based on the invoice credit method in that the registered person will remit the difference between VAT received and VAT paid during transactions conducted during the accounting period. ERCA made a controlling and filing of VAT using computerized system to administer VAT properly authorities use computer programs, namely: Standard Integrated Government Tax Administration System (SIGTAS) and Automated System for Customs Data Management (ASYCUDA). The computer programs are used to maintain taxpayer register and process VAT returns. Detection of non-filers seems to be carried out mainly manually. The authority tries to identify non-filers in collaboration with the Ministry of Trade and Industry. In Ethiopia every trader is required to renew business license annually with the pertinent offices under the Ministry of Trade and Industry or regional governments. To renew business licenses, traders are required to produce evidence from tax authorities that all taxes have been Paid. The tax authorities on their part, before providing the evidence to taxpayers, 6.5, Audit of VAT Auditing is a basic measuring of for effective tax collection, Audit of VAT in our country was very complicated before the introduction of computerized the tax system, due to different fraudulent of using invoice as mentioned in the above invoicing and book keeping requirements. However, the audit case by the audit selection committee. The selection criteria include; credit declaration, nil VAT declaration, non filers, unusual VAT filing and information obtained from third parties and customs decleracion. Based on the above selected criteria would be subject to audit. Most of VAT registrant provides monthly report as credit or nil. This is the effect of tax evasion by the taxpayers. All these problems affect the potential of revenue this would be due to lack of taxpayers awareness, human resources auditor in particular, the number of VAT registrant compare to auditors or the employees in tax authority is very low they cannot cover by the actual current employees in the ERCA. 6.6 Refunds Management The VAT proclamation No. 285/2002 Article 27/1 stated that at least 25% of the value of a a registered persons taxable transaction for the accounting period is taxed at zero rate, the ERCA shall refund the amount of the VAT applied as a credit in excess of the amount of VAT charged for the accounting period within two months after the registered person files an application for refund, accompanied by documentary proof of payment of the excess amount. The second Article 27/2 relates to unused excess credit. For non-zero rated transactions, the amount of VAT applied as a credit in excess of the amount charged for the accounting period is to be carried forward to the next five accounting periods and credit against payments for these periods. The registered person can claim refund if it has still unused excess credit at the end of the five month period. Refund claims are subject to checks and audit by the tax authority. In view of promoting export supplies, the tax authority effects VAT r efund for exporters in 15 days after checking and verifying the documents presented to it. 6.7. Penalties Taxpayers that are not compliant to the VAT law are subject to administrative criminal penalties. According to the VAT proclamation, articles 45-47 administrative penalties are imposed while persons are not registered for VAT where registration is required, when any registered person issued incorrect tax invoices, where invoices are issued without being registered, where there is underpayment and late filing of returns. Administrative fines range from a fine 100 percent of the amount of tax payable and a fine of up to 50,000 Birr. According to articles 48-59 criminal offences are liable to prosecution. A tax offence is a violation of the criminal law of the country and thus is subject to criminal charge and prosecution. Tax evasion, obstruction of tax administration, failure to notify changes in business address and business line, unauthorized VAT collection, improper tax debit and credit notes, aiding or abetting, offence by entities, offence by tax officers, offence by receivers are liable on convection to monetary fine of Birr 1000- 200,000 and imprisonment of not less than 1 year to not more than 15 years depending on the gravity of the offence. 6.8. Cost of Administration In the case of Ethiopia the cost of VAT administration must be proportional with professional standards of like developing countries. The researches indicate in most developing countries cost of administration estimates the range between 1 2% of collection. Actually low collection may not reflect efficiency but rather indicate unused of resources may occurred. In our country the administration costs are: salaries and wages and top-ups to staff deployed to VAT department, the cost of fixed assets and consumables including telephones, faxes, internet, electricity and power, fuel and lubricants etc. Since customs collects duties and taxes in a single administrative document, i.e. the customs declaration, it is very difficult to apportion the cost of administration for VAT all these costs are the total consumable of ERCAs administration cost for VAT (the above costs are only for VAT actually expend ). Therefore when take 2003 2004 FIRA Customs report the total cost of administration for VAT was 9,718,848 birr and total collection of VAT during the year would be 5,234,730,000 birr, so total administration cost was 0.00186 this is under the standard from the point of professional standards sited. ( I think this information is too late, but it can see or indicate the current performance, how ever now a day there are a lot changes to use resources effectively like the deployment of automation, recruitment of employees by allocate more budget how ever, it is not researched, but still it has a limitation) (Source: FIRA and Customs- Administration and Finance, Budget for 2003/2004 fiscal year.) Tax Payers Compliance From any taxpayer that expected they must comply with the laws and regulations of tax and customs duty. How ever as an employee of tax and customs authority the real situation of the taxpayers behavior is not what we are expected them. They are not complying with the tax and customs law. For instance with the fulfillment of the VAT registration requirement, timely reporting with the actual transaction they did, using authorized VAT collection, making true financial statement for tax purpose, providing the correct VAT invoice for any client e.t.c. consider the above issues; most of our taxpayers are not compliance. This would be faced in daily activity during tax and customs assessment and collection. Even there is a positive improvement to comply with law in changing the taxpayers attitude through different way of awareness creation. Strength on VAT administration When ever the VAT administration in Ethiopia has a problem, but there are positive actions are taken off by the Authority to facilitate the tax and customs servies with strong enforcement for non compliance taxpayers. Basically the Authority pursued the reform program in order to achieve the main objectives that are tax policy and administration reform, and customs reform and modernization. From the reforms the tax policy and administration reform have a result during the implementation would be : income tax law that was in force for more than 40 years was replaced in July 2002; VAT was introduced on January 1, 2003 to replace sales tax. Turnover tax was introduced on January 1, 2003 to apply to those taxpayers whose annual turnover is below VAT threshold. Excise tax was rationalized to more accurately reflect the current market situation. National implementation of the TIN network through the installation of communication equipment at FIRA, and City and Regional administrations sites. And taxpayers were registered for TIN. The replacement of the estimated assessment method with the more standard assessment method in order to achieve equity and administrative efficiency in connection with presumptive taxation. Tax collection and audit manuals prepared and put in use. Large Taxpayers Office and VAT Department established. Operational departments are automated as part of the modernization of the FIRA. TIN system interface with the Ethiopian Customs Authority is operational.(before merging the two Authority) Using this in mind the strength way of FIRA, currently ERCA would be perform many activities to improve services delivery and the potential of revenue on VAT administration. Thus are; The reform introduced during FIRA would take as a base to perform effectively and introduced BPR. Make extensive consultation with stake holders, comprehensive taxpayers education program and aggressive advertisement campaign. strongly used of computerized tax and customs system ( SIGTAS, TIN, ASYCUDA ++) Create positive attitude for the tax collector with good payments. Conducted comprehensive trainings on the VAT law, regulation, directives and administration techniques for tax officers drawn from different area of the country. Create strong enforcement unit on VAT 7. Measures were taken to enforce registration: for non compliant 8 Administrative and criminal cases are strongly followed-up 9. Strongly applied deterrent provisions: penalties and prosecution e.t.c, thus would be Taken to improve performance of VAT administration. 9. Basic Weakness 1. Lack of strong and follow up for non complaints 2. Lack of human resources specially VAT auditors 3. Lack of taxpayers awareness. 4. In some lack of ethics . Although VAT was successfully introduced in Ethiopia due to adequate preparations, different challenges have been faced in implementation as I have stated in VAT administration. In general ERCA faced the following challenges in VAT administration still- Resistance against VAT registration, Failure to register due to the prevalence of large informal sector, Low level of tax awareness, Suppression of taxable sales, Failure to issue invoices during transaction, Negotiate with customers during transaction to account VAT or not, Print and use of identical invoices, one registered by the FIRA and the other not, Issuance of fictitious invoices among related persons without actual transaction to overstate input VAT and claim refund, Prevalence of significant number of constant credit filers, nil-filers and non-filers, Non-remittance of VAT collected, Prevalence of missing traders, poor audit and enforcement capacity of the tax authority, and Mal-practices in the administration aspect. Recommendations From the above study I recommended as following: Recruit quality and quantity of human resource to be deployed and Training and development for staffs who will join and who have already joined. All liable businesses registered for VAT in all sectors of the economy must be registered and it needs strong and practical monitoring and controlling system. that fall within the threshold should be identified and an action to be compliant.. Must be apply frequent audit system ,donot delay the auditing. Due to lack of auditor, the auditors must selective based on the size of the business with return of tax from these. Make consistent tax educations for taxpayers in each tax Authority to create awareness. Create ethical tax servants e.t.c All the basic challenges that mentioned must be change and improve with substantial monitoring and controlling effort. Conclusions Ethiopian Government committed to improve the tax harmony in each stage of the tax authority by allocating resources with the efforts of ERCA. The effort which applied is the introduction of tax reform in Ethiopia. The Government introduced the VAT since 2003, mainly to broaden the tax base, and to compensate for revenue loss as a result of duty reduction at customs, to reduce distortions by other indirect taxes, and to encourage trade and investment. With the challenges that already stated, the performance of tax from VAT would be increase. For the increasing of VAT collection the introduction of IT has great role. The implementation of SIGTAS increases revenue collection, Real-time Management of Non-compliers, Facilitation of Assessments and Reassessments, Prompt Calculation of Penalty and Interest, Provision of Better Service to Taxpayers, these are facilitated the collection of VAT progressively. Appreciating the role of IT in VAT administration, during FIRA decided to automate the administration of all taxes in an integrated manner. Thus, the functionalities of VAT SIGTAS were extended to embrace the other taxes and ERCA would be catch-up the system and implemented successfully. SIGTAS all taxes was tested at the Large Taxpayers Office in August 2006. Currently, all tax centers of the FIRA are using SIGTAS all taxes software. The application of SIGTAS has been instrumental in improving the efficiency and effectiveness of the tax administration. And Extensive consultation with stakeholders, comprehensive taxpayer education programmed, aggressive advertisement campaign and an intense registration drive did help the tax authority. Over all the experience of Ethiopia in automating tax administration, including VAT, shows that success in IT implementation is mainly dependent upon: aggressive implementation as per schedule, strict control over procedural issues, active action in case of peculiarities, monitoring and feedback, continuous manpower development, timely provision of hardware and supporting services, and proactive and genuine participation of every member of the tax authority.

Food and Beverage Control

Objectives of F&B control * Analysis of income and expenditure performance can be expressed in gross profit, net margin (gross – wages) and net profit (net margin – rent, rates, insurance†¦) * Establishment and maintenance of standards. SOP (standard operational procedures) * Pricing * Prevention of waste * Prevention of fraud * Management information Problems of F&B control * Perishability of food * Business volume unpredictability/sales instability Menu mix unpredictability * F&B operation short cycle -> little time for many control tasks * Departmentalization – several production and service departments -> separate trading results Fundamentals of control Planning phase Policies: pre-determined guidelines * Financial policy – level of profitability, subsidy and cost limits from each department * Marketing policy: target group * National identity * Customer profile Market share – same or more percentage of ‘our’ market * Turnover – sales volume increased by x% on previous year * Profitability – profit increased by each unit by x% on previous year * ASP (average spending power) increased by x% or to achieve a new ASP of no less than â‚ ¬x * Product – same high standard * Customer satisfaction – net result must be the satisfaction of every customer * Catering policy – main objectives of F&B facilities and describe the methods of how this is achieved * Type of customer * Type of menu * Beverage provision necessary for operation Food quality standards * Method of buying (contract, cash†¦) * Type and quality of service * Degree of comfort and decor * Hours of operation Operational phase * Purchasing * Product testing (tasting) * Yield testing * Purchase specifications – concise description of quality, size, weight etc. * Method of buying * Clerical procedures (who places orders, what documentation necessary for control) * Receiving * Quantity inspection * Quality inspection * Clerical procedures (acknowledgement of the receipt, delivery signature) * Storing and issuing * Stock records Pricing of items * Stocktaking (how much stock to be held, rate of stock turnover etc. ) * Clerical procedures (what documentation in necessary) * Selling * Checking system (number of items sold) * Control of cash * Clerical procedures Post operation phase * F&B cost reporting (daily or weekly) * Assessment – compare reports with budgets and with previous performance * Correction if necessary Reality of control: never 100% efficient Setting the budget and break-even analysis * Budget – plan which reflects policies and determines the business perations for a particular trading period * Budgetary control – control with particular responsibility for budget results is assigned to managers and continuous comparison between the actual results and the budgeted figures is made * Objectives of budgetary control * To provide a plan of action, to keep business with its policies and to maximize the full use of resources * To set standards of performance * To set out levels of cost responsibility and to encourage cost awareness * Capital budgets – assets, equipment etc. * Operating budgets – day-to-day income and includes sales, cost of sales, labour, maintenance etc.Stages of budgeting 1. Determination of net profit, capital invested and risks involved 2. Preparation of sales budget – volume of sales necessary to achieve desired net profit. Also influences budgeted cost for food, labour etc. 3. Preparation of administration and general budgets (office expenses, advertising etc. ) 4. Preparation of capital expenditure budget (new equipment, furniture) 5. Preparation of cash budget (cash inflows/outflows, cash balance) 6. Preparation of master budgets (trading account, profit loss account and balance sheet) Costs, profits and sales Material costs = opening stock + cost of purchases – closing stock â€⠀œ cost of staff meals * Labour costs = wages and salaries * Overhead costs = all other costs Four kinds of costs * Fixed – always the same * Semi-fixed – depends on volume of sales but not in same proportion (fuel, telephone costs) * Variable – in proportion to volume of sales * Total – sum of above Profit * Gross profit – total sales – cost of materials * After-wage profit/net margin – total sales – material – labour * Net profit – total sales – total costs (material, labour, overhead cost) Break-even analysis * Based on: Selling price, product mix and unit costs remain the same * Only one product is made/sold * Break-even = C/(S-V) * C = total fixed costs * S = sales price * V = variable cost Software systems * Menu planning (popularity and profitability) * Production control (quantities) * Stock management (maintain stock levels) * Purchase ordering (order automatically when minimum stock) * Menu analys is (individual customer menu choices recorded) * All of these systems together: EPOS system Basic concepts * Planning, standard yields, recipes, portion sizes -> PYRS * Production planning (or volume forecasting) Goal: cost control, purchasing, reduce waste, production on demand, comparison between actual and potential volume of sales * Standard yields * Is the usable part of that product after initial preparation, or the edible part of the product after preparation and cooking * Goal: know how much to buy, safeguard against wastage – measurement of efficiency of production, accurate food costing * Standard recipe * Goal: accurate costing, important to know nutritional value, useful in kitchen * Standard portion size * Aid to food costing Methods of food control Control cycle * Purchase order * Delivery note Invoice (usually send directly to accounts department) * Requisition Weekly/monthly food cost report * For small business * Simple and quick to make * No intermediate inf ormation (only after 7 or 28 days) Daily food cost report * For small to medium-sized business * Simple and easy to follow * Detailed * Corrective action can be taken early in the month * Accuracy is important * Ignores staff meals, food that goes to/from bar -> not accurate Calculation of potential food costs 1. Multiply number of each menu item during a sample week by potential food cost per portion -> total potential food cost of a week 2.Same with sold portions and menu prices -> potential total sales 3. Divide total potential food cost by total potential sales -> potential food cost percentage * Necessary information for above calculation: * Number of items sold and their selling prices * Standard recipe cards of all menu items * Summary of potential food cost obtained from recipe cards * Average market price for main ingredients Methods of beverage control * Six basic types: control of purchasing, receiving, storing and issuing, planning, establishment of standard yields, reci pes, portion sizes and inventory * Par stock or bottle control system Beginning stock * Number of empty bottles to be counted and requisitioned for the day * Potential sales based on quantities issues and compared to actual revenue received * Adjustments made to selling price if necessary * Potential sales value system * Revenue value of each bottle based on standard size of drink, contents of bottle and selling price for each drink * Full bottles of spirits: potential sales value is the same as selling price * Spirits sold by glass: number of drinks x price per drink = potential sales value * Millimeter system * Most accurate EPOS reporting Menu item preference – to identify potential menu items that aren’t doing well and eliminate them from the menu * Menu item profitability * Sales by meal period – to know when to hire more staff or for marketing * Sales by server – to identify members of staff who need further training * Category report * Table waitin g times Profit sensitivity analysis (PSA) * Identifying the ‘critical’ or ‘key factors’ of a business and how they influence the net profit * Method of PSA: 1. Identify key factors (number of covers, F&B costs, labour costs†¦) 2. Assume a change in one key factor at a time 3.Calculate resulting change in net profit 4. Calculate ‘profit multipliers’ PM = % of change in net profit / % of change in key factor 5. List the PM’s in order of size 6. Analyze results Menu engineering * Evaluation of menu with regard to its present and future content, design and pricing * Highlight the good and poor performers on a menu * Customer demand – number of customers served * Menu mix – customer preference for menu item * Contribution margin (GP% – gross profit %) of each menu item (how much earned from item) * Stars – popular menu items and high GP% * Plowhorses – popular but low GP% Puzzles – low popularity but high GP% * Dogs – low popularity and low GP% Systems of revenue control * Manual or automated * Sales checks: each item ordered and the selling price to be recorded in check pads * Cashiers role: check and record the check pads in a ‘check number issue sheet’ and check pricing of all checks and add taxes Computerized items * Pre-checking systems: waiter has own machine key * Pre-set pre-checking system: each item on menu has its own key on machine * Electronic cash registers (ECR): EPOS is better so now only for small operations * MPOS: handheld/mobile EPOS systemForecasting * How many customers and what will they eat at what time * We need: * Sales and turndown history * Cancellations and no show trends * Competitor data * Market trends * Weather forecast * Methods of forecasting software * Non-linear regression: used when time is the independent variable * Multiple regression analysis * Trend analysis * Adaptive filtering Operating ratios * Total F&B sales * Recorded and checked against budgeted sales figure * Done daily for large businesses * Departmental profit * Expenses = costs of F&B labour * Profit = % of departmental sales Ratio of separate F&B sales to total sales * ASP – number of items recorded on till roll and total sales * Sales mix – food-beverages, appetizers-coffees-mains * Payroll costs – % of sales – higher if more service * Index of productivity – sales/payroll * Stock turnover * Rate of stock turnover = cost of F&B consumed / average stock value at cost * Number of items that average level of stock has turned over in a given period * Sales per seat available – sales value that can be earned by each seat * Rate of seat turnover – number of times that each seat is used * Sales per waiter * Sales per m?

The Impact of Domestic Violence - 2015 Words

Domestic Violence Domestic violence is a social problem that affects individuals, families, and the communities in which they live. The public awareness and understanding of domestic violence has greatly increased over the last few decades. This knowledge has illuminated the prevalence of families suffering in violent environments. This new understanding has given rise to many resources, agencies and services designed to combat the harmful and lasting affects of domestic violence and to give aid to its victims. Domestic Violence: What is it? Who does it affect? Domestic violence is physical or sexual assault, which occurs between two people in a relationship (domesticviolence.org, 2009). Examples of personal relationships that may†¦show more content†¦Multiple behaviors demonstrated by preschool age children (age 2-5): Hyper-arousal, aggressive behavior, avoidant behavior, and developmental regression...clinically significant anxiety, depression, and posttraumatic tress...separation anxiety, sleep disturbances, changes in eating patterns and toileting regression (Herman-Smith, 2013, p. 232). School age children and adolescents may experience peer difficulties, depression, under developed verbal skills and higher levels of aggression (Holt, Buckley, Whelan 2008). Domestic Violence: Services and Policies Many services are offered through domestic violence programs and various shelters available throughout the country. Many of these programs include emergency shelters, but sadly, funding cut backs have reduced the amount of shelters available. In 2012, a study conducted by the National Network to End Domestic Violence found that 6,818 requests for housing from domestic violence victims were unmet (NNDEV, 2012, p. 3). Non-shelter services include: counseling, group support, court accompaniment, transportation, educational programs, and public benefit help (NNDEV, 2012, p. 7). While the focus of these organizations is to help women obtain resources and education, they also offer various counseling services to the children involved (Clevenger Row-Sepowitz, 2009). Government programs such as The Family Violence Prevention Act, ViolenceShow MoreRelatedThe Impact of Domestic Violence on Children661 Words   |  3 PagesQuestion 1 There are many consequences of not taking a strong stance against domestic abuse and the later impact on the children in the situation. Even if the children are not involved in the actual abuse, they are still negatively impacted by the presence of domestic violence in their households (Osofsky 1990). 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To know whether a child has been harmed by their experien ces we need to how ‘normal’ childrenRead MoreDomestic Violence Has A Negative Impact On Children1568 Words   |  7 PagesOpen your eyes: Domestic violence has a negative impact on children. Being 8 years old and growing up witnessing domestic violence in my household was hard. â€Å"About 70% of domestic violence between couples goes unreported (S.N)† The reason the rate is so high is because fear overcomes the victim. The lack of someone being able to sit down and talk without being scared of getting home and getting beaten by their partner is bad, the reason of not being able to just sit down and talk to someone justRead MoreMinimizing Domestic Violence Impacts The Seriousness Of The Issue1483 Words   |  6 PagesMinimizing or denying domestic violence impacts the seriousness of the issue. There are three themes that associates with this type of attitude: nonexistence, disbelieving, normalizing, and optimism. Many victims don’t have firsthand experience in abuse and many communities deny that something like domestic violence occurs within their communities. This will then lead to disbelieving the victim when making accusations. Disbelieving can also be caused by personal optimism. Then people began to normalizeRead MoreThe Impact of Domestic Violence Against Women in Tanzania5091 Words   |  21 PagesContext of the Problem Womens violence is a main problem in Tanzania and this paper will describe, possible impact brought by domestic violence to women of Tanzania. Women experience the violation such as raping, beating, threats and involuntary prostitution. Few years ago woman violation was not a major issue in the society, and this is because of the social approach towards women, where by men were given more priorities in the system of education and labor force in the society than women

High Class Beer And Low Class Fashion - 1297 Words

High Class Beer Sold In Low Class Fashion An advertisement can be a lot like a persuasive essay. A promoter wants their audience to buy their product much like a essay writer wants their audience to buy into their thesis. Just like an essay an advertisement has a criteria in which it must fulfill in order to achieve its goal. Certain things the creators do will either help entice the audience , or will deter the audience from ever looking at the ad again. The general public will see thousands of ads in a single day, but only a handful of them will ever standout and be memorable. When creating an ad for a magazine; some of the simplest mistakes can turn a great promotion into just another page. For an ad to be successful it must be both†¦show more content†¦In the second layer, or the foreground of the ad there is a colored picture of Miller High Life. The picture of the product is on the right, and takes up the entire fourth quarter of the page. This image is what s cutting off the second woman in the photograph. Next there is very large text in the lower center of the page. The slogan is in entirely in capital letters, and is in bold and block-like font. In the lower-left corner of the ad there is an average sized, red and white Miller logo. To the right of the logo is another slogan, that is in cursive and regular sized font. Below that is another slogan in small font. This ad s visual design doesn’t work because there is too much for the reader to focus on in this ad. The creators hoped to use the contrast of the color product in the foreground of the black and white photograph to bring focus to the product. However, the exact opposite is what ensues. The black and white photo along with the large bold text in the lower center actually draws the audiences attention away from the product. The reader could look at this ad and not even notice the colored-in Miller High Life bottle. The colored product is also too large, and it ruins any symm etrical balance. Furthermore it is covering the second woman, and bringing her out of focus. This gives the reader the impression that she is not important. The audience will suffer the most from