Answer to Question 1
Managers control preproduction beverage product costs by establishing control systems in four key areas: purchasing, receiving, storing, and issuing. In all cases the control systems in these areas must emphasize the protection of product quality and security. Wasted or spoiled products increase costs. Theft of product also increases costs. The manager must develop and monitor purchasing, receiving, storing, and issuing procedures designed to avoid both of these cost-increasing preproduction situations.
Answer to Question 2
Managers use procedures to maintain positive relationships with their own bosses. Effective communication is a key to this.
Managers can use a manager's daily log to report to other managers and improve communication between shifts. This report will include financial and operating information including an overview of any critical incidents.
Managers must be aware of other information, much of which is likely to address financial issues, that is desired by their own manager. They must then develop a process to collect and route this information to their manager on a timely basis.
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