For several years running, the Bacchanel Buffet, a Caesars Palace® Las Vegas all-you-can-eat attraction, has been voted the best buffet by "USA Today" and other publications. The Bacchanal Buffet offers a seemingly unlimited selection of food. Menu items include fried chicken and waffles, Japanese curry, a seafood station, prime rib, truffle scalloped potatoes, made-to-order dessert crepes, and hundreds of other choices. The price paid by customers varies according to the time of day. Brunch is approximately $52 per customer, while dinner is approximately $62 per customer.
Questions
1. Suppose Caesars wants to know how much profit it earns per buffet customer. Would Caesars use a job costing system or a process costing system when determining the cost of the buffet per customer? Explain.
2. Why does Caesars need to know the cost of the buffet per customer? Do you think the buffet cost per customer will vary depending on the time of day and the buffet options offered with the brunch or dinner shifts?