Marjorie manages a 200-seat, white-tablecloth restaurant in an upscale neighborhood. Since her guests expect her tablecloths and napkins to be really white, she sends her linens to a local laundry service daily. The laundry service charges her by the piece. She wants to keep track of her laundry cost per guest to see if she can use the information to control her laundry costs better. Help her complete her six-column cost per guest report. She has budgeted $0.60 per guest on average.
Six-Column -Laundry Service Unit Name: Marjorie's Date: 5/1-5/7 Laundry Service Number of Guests Cost per Guest Cost Served Weekday Today To Date Today To Date Todat To Date
1 $225 400 2 204 375 3 200 350 4 240 425 5 275 450 5 300 500 6 230 420 Total How is she doing at controlling her laundry costs?

In response to how Majorie is doing at controlling her costs, tt is obvious that her total cost per guest is never higher than $0.60 per guest (last column). The inference is that she has complete control over the expense.

What is cost control?

Cost control refers to the activity of detecting and cutting corporate expenditures in order to enhance profits; it begins with budgeting.

Cost containment is critical to sustaining and developing profitability.

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