Answer to Question 1
Discounts are deductions from the normal price that a buyer pays to a vendor. There are several types of discounts. These include discounts for prompt payment, for increased quantities purchased, for customer status such as membership in a specific company, and special and promotional discounts. The latter may be offered when a seller is interested in reducing inventories of older or discontinued products. Rebates are reductions to price after a purchase has been made at the normal selling price. The results of discounts and rebates should be considered in the price used as a basis for comparison with other vendors.
Answer to Question 2
Managers develop sales forecasts to project revenue and costs for given time periods. Managers use historical data, as well as menu mix analyses based on those data, to estimate the number of menu items needed for a given shift or day. Managers populate the food-production chart to communicate to the staff the estimated levels of each food item to prepare. When needed, managers scale recipes to the appropriate yields, as indicated on the food-production chart. Managers also know how to calculate yields for all recipes.
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Describe the Conceptual Forecasting Framework in your own words.