Effective money management begins with a comparison of the actual money spent versus what is in the budget. The budget process is a series of steps if followed, will produce an equitable distribution of the company’s revenue and expenses. A foodservice budget has factors that should be considered such as food costs, salaries, equipment, maintenance, utility services, and taxes. The budget should be completed in advance of the first fiscal billing cycle.

Topic: Applying Budgetary Considerations and Leadership

Make sure to title each part of your response as Part A and B.

Part A: The Food Truck

You are the owner of several food trucks in the nearest city to you. You serve gourmet desserts, pastries, and coffee around the city. Explain the following:

1. Why would it be important to communicate production standards to your employees?
2. What would be necessary to ensure that employees apply required portion sizes? 

Part B: Leadership

Based on the Table 14.1, Chapter 14 in your text, and the Learning Activity as the food truck owner in Part A, respond to the following questions:

• How would you recognize goal achievement and motivate your team members?
• What type of leader power would you use and when?