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Answered
Fast Food Terminals III
After firing cashiers to install touchscreens for patrons to place orders,Taco Casa determined that their average cost per touchscreen order was $0.65.After determining that the average compensation cost per human mediated order was $0.60 per order,they revert back to human order takers.Then why did the realized average cost per order with humans come in at $0.70?
On Jul 13, 2024
Compensation costs represent the bulk of the employee costs,but not all of them.Low wage employees can have conflicts with customers that reduces orders,employees can incur costs if they get injured on the job or if they break equipment,and some employees steal while machines typically do not.A full analysis would incorporate these potentially hidden costs.