LittletownCafé is located in a small town in a Lake District Midwestern state.The data collected between the months of May and June shows theaverage number of guest received by the Café over the two monthswhich are coincidentally the busiest months for the café during thesummer. The data collected seems to be biased since it only includesthe months when the café is in high season and the data is thereforesuitable for the business scenario since it is during these monthsthat the café experience the highest number of guests. Given thescarce resources in terms of labor that the café experiences thedata would come in handy in helping the café make its decisions.
Asfar as the data is concerned, several factors would affect thevalidity of the data collected. For instance, one would question theaccuracy of data. It is not necessarily clear who records theattendance or the number of guests who visit the café during the twomonths. It is possible that the guest who visit the café arerequired to fill out a guest book at the entrance of the café or thecafé might just have the number of guest by looking back at thenumber of meals served or by looking at the cash register. Inaddition, the data may not be reliable as different employees mightbe working on different days and there might be some errors made onthe meals ordered or at the cash registers. Such kind of errors wouldrender the data unreliable for any analysis. There might also becases of duplication when it comes to the number of guests. In otherwords, guests who might have come back to the café for a quick ordershortly after leaving the café might be treated as new guests. Inorder to ascertain the validity and reliability of the data, I had tofamiliarize myself with the system of recording guests at the café.I was able to establish that the café uses a guest book diary at theentrance of the café where guest are required to sign in their namewhen they come into café. The café also has a record of all thenumber of meals order by every single guest and these orders are sentto the accounts department for entry. From my analysis on the datait is evident that the café has a good system of keeping the recordsof the number of guests. However, there are some concerns about thevalidity and accuracy of the data due to the simple fact that errorscould have been made during the data collection process. Forinstance, some guest could not have jotted their names down on theguest journal as required.
Thedata collected by the café for the number of guests runs fromMemorial Day on May 20thto June 7thfor the years 2012 till 2014. The data collected is for a 19 daysover a period of three consecutive years. A bar graph was selectedfor the data set as it would display a good visual presentation forthe data [CITATION BPP154 p 288 l 1033 ].A bar graph would show the number of guest in each day and wouldclearly show the disparity for the number of guests over the threeconsecutive years therefore showing the trend on the number of guestover the years.
Accordingto the data collected, a calculation of the measure of centraltendency reveals that the mean of the number of guests for the threeyears is 182.05 for 2012, 174 for 2013 and 188.4 for the year 2014.The median for the data is 91, 81 and 96 over the three yearsrespectively. The mode for 2012 is 107, 94 for 2013 and 91 for 2014.Finally, the standard deviation for the three years is 22.35 for2012, 18.80 for 2012 and 21.53 for the year 2014. The calculationswere conducted through the excel spreadsheets and the excel functionssimplified the calculations as data would only be highlighted and thespreadsheets would come up with the four measures of centraltendency.
Abrief analysis of the four measures of central tendency reveals thefollowing. The average number of guests who visited the café in 2012was 182, in the following year the number dipped to 174 while in 2014the number increased by 14 guests. If the number of guest registerwas arranged in ascending order, the median number of guest in 2012would be 91 while in 2013 the number would decrease by 10 however in2014, the number would rebound to 96. If the café would count thenumber of guests that have appeared for the most times, the modeswould be as follows: 107, 94 and 91 as they all appear twice in theirrespective years. Finally, the standard deviation which shows howmuch the data is evenly spread out from the mean shows that 2012experienced the highest variation of 22.35 while 2013 had the leastvariation at 18.80. The standard deviation was 21.53 in 2014. Theanalysis of the data shows three things. First, Littletown caféexperienced its best year in 2014 as it reported the highest numberof guest in that year. Second, the trend dipped in 2013 while itrebounded in the year 2014. Third, 2012 experienced the highestvariation in the number of guests however the variation declined overthe following year with an increase experienced in 2014.
BPP Learning Media. (2015). Management Accounting. London: BPP Learning Media.