Abstract.docx

University of Luzon COLLEGE OF ACCOUNTANCY Dagupan City

APPROVAL SHEET

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University of Luzon COLLEGE OF ACCOUNTANCY Dagupan City

THESIS ABSTRACT

Title:

SALES PERFORMANCE OF SIZZLING COUNTY:

A

BASELINE STUDY Researchers: ILUMIN, MAY ANN U. Dela Cruz, Ravenna M. Sison, Winaliza C. Bautista, Stephanie V. Ang, Kate Joanne R. Delos Santos, Chloie R. Fabia, Marie Antoineth D. Orbino, Katrina Marie M. Ramirez, Mary Ann P. Course:

Bachelor of Science in Accountancy and Bachelor of Science of Accounting Technology

Professor:

Dr. Carmelo John E. Vidal

Institution University Of Luzon School Year: 2018-2019

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University of Luzon COLLEGE OF ACCOUNTANCY Dagupan City

Background of the Study A Sales Performance Analysis is a way of assessing where your business currently stands compared to where it wants to be in the future. It uses industry businesses standards, performance, and other elements for comparison. The analysis shows the gaps between the current state of your business and how it should be performing and what are the causes for the gap in between. One of the common industries of business is food service. Food service came around after the Second World War and has come a long way since then. In the past years it was a mere convenience provider and time saver, the easiest and fastest way to fill appetites. It has now evolved into a premium luxury item. It is now very popular among all ages of people. The study is conducted to help the chosen entity’s sales team to identify their weaknesses in their sales strategy and be able to make changes to help them improve the results over the next period. Sizzling County located in Dagupan City, Pangasinan is chosen by the researchers as the subject of the study. As food service industry has grown steadily over the five years to 2018, researchers are curious on how this kind of entity performs based on their sales and how they contribute to the growing industry. Moreover, the researchers are quiet iii

University of Luzon COLLEGE OF ACCOUNTANCY Dagupan City

interested on the sales trend of the entity which is vital in the measurement of overall sales. The researchers aimed to gain a deeper understanding and knowledge about the subject matter of the study. Statement of the Problem The study aimed to analyze the

sales performance of

Sizzling County in Dagupan City, Pangasinan.. Specifically, it is premised on the following questions: 1. What is the sales performance of Sizzling County based on the following: a. Projected Sales and Actual Sales; b. Projected Cost and Actual Cost;

2. What

sals performanace related problems are encountered by

Sizzling County in Tapuac District Dagupan City? 3. What probable measures can be proposed to improve the sales performance of Sizzling County in Daupan City? Research Method Used Descriptive assessment method is the method used by the researchers in the conduct of study. The method involves gathering data that describe events and then organizes, tabulates, depicts, and describes the data collection. iv

University of Luzon COLLEGE OF ACCOUNTANCY Dagupan City

In this research study, the researchers specifically used the projected sales and actual sales from year 2017 and 2018 to be used to assess the sales performance of the entity. The researchers used interview guide as an instrument of gathering additional information. The researchers used unstructured questionnaire

as

an

instrument

throughout

the

interview.

The

researchers interviewed the owner, some of its employees and some customers and to obtain information about the problems encountered by the entity along its sales performance. Summary of Findings This study was conducted for the purpose of determining the status of sales performance of restaurant business in Dagupan City, in which Sizzling County was chosen as the subject of the study. In the comparison of actual and projected sales for the two-year period, the ability of the entity to generate sales is not constantly increasing or decreasing. It also shows the monthly sales from 2017 to 2018. The highest one - month sales in 2017 is the same in 2018. November is the highest one – month sales with Php 93,998.29 in 2017 and Php 153,810 in 2018. v

University of Luzon COLLEGE OF ACCOUNTANCY Dagupan City

Among the 12 months in 2017, only two months resulted to favorable variance which means only two months where Sizzling County met their projected monthly sales. During 2018, only six months resulted to favorable variance where the entity had met their projected monthly sales. Total sales increased during year 2018 that leads to an increase in taxable income also in the year. It is “favorable” to the income of the company that decrease their expenses for the month of January (P1,658.09), for the month of April for (1,649.52), for the Month of May (4,184.66) , for the month of June with a decrease of ( 1819.53) on the expenses incur. On the other hand, They encountered increase on cost and expenses for the month

of February

which is 3,013.93, March for

3,432.17, March for 3,432.17, July for 1,096.87, August for 7,055.11, September for 1,436.58, October for 11,476.50, November for 17,380.95 and December for 1,093.94. It shows that

it is unfavourable to the company

those month

which they company incur higher expenses such as January (658.11), March ( 39779.99), April 5,805.12 , May (16,579.70 ). May (16,579.12) ,

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University of Luzon COLLEGE OF ACCOUNTANCY Dagupan City

June

(8,538.39),

September

(12,1405.51)

October

(

27,355.92),

November 29,650.68. While it is favourable to the company as table shows that they decrease their expenses incur for this year. February, July ,

August

and December have a low cost and expenses incur. Problems Encountered by Sizzling County in Terms of Sales Problems that are encountered by Sizzling County during its operations are poor marketing strategy, no internal control practices and lack of space. The proposed measures to improve the sales performance of Sizzling County to improve their own performance in selling their products for best possible opportunities to increase their sales. Conclusion The sales performance of Sizzling County for the year 2017 was not in good standing although there are favorable variances in sales and costs and expenses and a positive net income. As shown in the comparison of actual and projected sales and comparison of actual costs and expenses and projected costs and expenses, majority of the months in 2017 resulted to unfavorable variances. Regarding the quarterly

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University of Luzon COLLEGE OF ACCOUNTANCY Dagupan City

taxable income during the year, only fourth quarter resulted to taxable income. The first three quarters all resulted to a loss. On the other hand, the sales performance of Sizzling County for the year 2018 was in good standing although there were increases and decreases resulted to inconsistency of their sales generation shown in schedule of budgeted and actual sales. As shown in the comparison of actual and projected sales and comparison of actual costs and expenses and projected costs and expenses, majority of the months in 2018 resulted to favorable variances. The total taxable income in 2018 had increased compared to 2017. Regarding the quarterly taxable income during the year, all quarters resulted to a taxable income.

Sizzling

County, despite the problems they encountered, still can meet their objectives for the reason that they can cover all the costs and expenses through the sales they are generating. Having been in the track for six years, Sizzling County also faced some difficulties in generating their sales because of seasons. The problems

encountered

by

the

business

that

affect

their

sales

performance are poor marketing strategy, no internal control practices and lack of space.

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University of Luzon COLLEGE OF ACCOUNTANCY Dagupan City

Recommendations Based on the significant findings and conclusion presented, the following recommendations are suggested: 

The proposed measures affecting sales that was presented chapter IV can be used by the management as a guide for the improvement of the status in operations of their business.



For the future researchers, the study can offer initial knowledge and understanding regarding sales performance of a restaurant. All former suggestions and recommendations will serve as guide in developing an idea regarding future development of a restaurant. Aside from that, it will serve as the basis of future researchers in developing new studies for the future improvement of Sizzling County.

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University of Luzon COLLEGE OF ACCOUNTANCY Dagupan City

List of Figures/Tables Figure/ Table Figure 3.1: Site Map of Sizzling County Restaurant

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Figure 4.1: Chart of Sales Report 2017

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Figure 4.2: Chart of Sales Report 2018

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Table 4.1: Sales Performance for the Months January to December 2017

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Table 4.2: Sales Performance for the Months January to December 2018

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Table 4.3: Schedule of Costs and Expenses for 2017

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Table 4.4: Schedule of Costs and Expenses for 2018

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Table 4.5: Quarterly Taxable Income for the years 2017 and 2018 45 Table 4.6: Interview Questionnaire and Results

46-47

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University of Luzon COLLEGE OF ACCOUNTANCY Dagupan City

Acknowledgement This study would not be possible without the helping hands and guidance of the individuals who contributed and extended valuable assistance all throughout the process of preparation, completion and success of this study. Above anyone else, the research team would like to thank the Almighty God with His son Jesus Christ and the Holy Spirit for providing blessings, strength and wisdom to conduct this study. The Researchers would like to express the heartfelt gratitude to Dr. Carmelo John E. Vidal, research professor at University of Luzon for sharing his knowledge the best way he can and for encouraging his students to properly finish this study; Also, the research team would like to acknowledge Mr. Angel Samson Reyna Jr., the owner of Sizzling County for the time, cooperation and for giving the data needed in this research; To the employees of the company, who warmly showed hospitality to the research team during the site visit; To the College of Accountancy faculty, for their pieces of advice that served as a guide to finish this study;

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University of Luzon COLLEGE OF ACCOUNTANCY Dagupan City

To the University of Luzon facility especially the library, that served as the venue of the researchers in making the study and for the books that served as resources; To the families of the researchers, who have showed support spiritually, emotionally and financially in order for the research team to come up in an end of this study; Lastly, to the friends and love ones of the research team, who shared insights, care and love which keep the researchers motivated and dedicated to this study.

The Researchers

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University of Luzon COLLEGE OF ACCOUNTANCY Dagupan City

DEDICATION We dedicate this humble work to the Almighty God from whom all the source of wisdom, courage and strength. To the beloved parents of the researchers who have been there as a constant source of inspiration to do well in school. To the very able instructor of the researchers, Dr. Carmelo E. Vidal, who shared his knowledge and time for the perfection of this research work. To the succeeding researchers that value learning and to those who believed that knowledge and wisdom are the key to success. May you all be inspired and see the importance of this study into our lives. May Ann Ravenna Winaliza Stephanie KateJoanne Chloie Mari Antoineth Katrina Marie Mary Ann University of Luzon Dagupan City March 2019

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University of Luzon COLLEGE OF ACCOUNTANCY Dagupan City

Table of Contents Approval Sheet

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Abstract

ii

List of Figures and Tables

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Acknowledgment

xi

Dedication

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Chapter I – THE PROBLEM AND ITS BACKGROUND Rationale

1

Statement of the Problem

6

Scope and Delimitation

7

Significance of the Study

8

Definition of Terms

10

Chapter II – REVIEW OF RELATED LITERATURE AND STUDIES Conceptual Literature

13

Research Literature

26

Chapter III – RESEARCH DESIGN Research Method Used

29

Locale of the Study

30

Subject of the Study

33

Data Gathering Instrument

34

Data Gathering Procedure

34

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University of Luzon COLLEGE OF ACCOUNTANCY Dagupan City

Treatment of Data Chapter

IV

–

DATA

35 PRESENTATION

ANALYSIS

AND

INTERPRETATION Sales Performance of Sizzling County in Tapuac District, Dagupan City

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Cost and Expenses Effectiveness

42

Profitability

45

Customer Satisfaction Achievement

46

Problems Encountered by Sizzling County in Terms of Sales Performance

47

Proposed Measures Improving the Sales Performance of Sizzling County Chapter

V

–

SUMMARY

49 OF

FINDINGS,

CONCLUSION

AND

RECOMMENDATION Significant Findings

51

Conclusion

54

Recommendations

55

BIBLIOGRAPHY

57

APPENDICES Appendix A: Letter of Permit to Conduct Study

59

Appendix B: Interview Guide

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University of Luzon COLLEGE OF ACCOUNTANCY Dagupan City

Appendix C: Income Statement 2017

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Appendix D: Income Statement 2018

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Appendix E: Records of Costs and Expenses 2017

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Appendix F: Records of Costs and Expenses 2018

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Appendix G: Records of Sales 2017

65

Appendix H: Records of Sales 2018

66

CURRICULUM VITAE

67

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University of Luzon COLLEGE OF ACCOUNTANCY Dagupan City

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