MARO TANDOORS
Group Members:
Fatima Sohail
Kinza Hussain Mirza
Hafsa Hussain
Mahrukh Khalid
Shahrukh Farrukh
Section L
Presented to: Mehreen Furqan
Cost Accounting
18th December, 2016
Lahore School of Economics
Introduction
MARO Tandoors is a startup that was founded by a group of four supremely passionate and
talented undergraduate students of LUMS; Ali Ahmed, Saifullah Minhas, Zain-ul-Abideen
Hassan and Zaeem Shahid.
Though MARO Tandoors started off as a road-side dhaba in 2015 however now they have fullfledge operational branches in Model Town and DHA Lahore. MARO plans to open a network of
Tandoors over Lahore and eventually all over Pakistan. It provides hygienic, high quality naans
and other tandoor based menu items at an affordable price as reflected by their mission statement
shown below.
To provide tandoor customers what they deserve- The best service, hygiene and taste possible
The product range being offered by MARO is diverse, ranging from a variety basic naans to
special naans such as nutella naan, pizza naan, cheese naan and qeema naan. Apart from this,
they also offer a variety of beverages (Refer to Appendix A).The nutella naan and the pizza naan
are their inventions however the idea got replicated by other rivals as well.
For the project under study, we interviewed Mr. Zain-ul-Abideen Hassan who is also the cofounder and the CFO of MARO Tandoors.
Production Procedure
Demand
sent to
suppliers
Cooking/Bak
ing
Presentation
Raw
Materials
recieved
Kitchen
Consumptio
n
Work in
Process
Order
received
from
customers
Billing and
Payment
Costing Method: Job Order Costing
MARO Tandoors is using Job-Order costing technique since all the goods being manufactured
are produced in batches and whenever an order is placed an individual cost per order is recorded.
Hence, multiple products are produced in batches of relatively small quantity. Each batch is
considered as a Job or Job Order. Mr. Zain told us that the costs of the raw materials such as
pairay of naans is already estimated beforehand. Whenever an order is placed by the customer
the cost of direct labor and factory overhead is then accommodated accordingly to each
particular job and then the per unit cost is determined or recorded.
For costs such as utilities or indirect material the company follows a four department procedure.
If any indirect material is needed at the branches such as a dust-bin, the branch sends a request to
the store. If there is a shortage of the indirect material at the store, the store send a demand
form similar to the material requisition form to the procurement department. Then the
procurement department obtains money from the finance department for purchasing the material.
Once the material is purchased, it is sent back to the store and then the store supplies the indirect
material to the respective branch as shown by the framework below.
Branch
Store
Procurement
Department
Finance
Department
Service Providing Unit
Today almost all businesses are thought to be providing a blend of manufacturing product along
with added services. Businesses cannot successfully deliver goods to the customers without
providing them with high quality service in order to create value for their customers. MARO
Tandoors is an eatery that offers baked naans along with an exceptional service. Being a
restaurant it is categorized as a service providing unit.
Appendix A
Product Range:
Tandoor
Plain Naan
For when moms not cooking. The humble naan that we all know and love.
Serves 1
Rs.8
Kulcha
The naan with a makeover. With a light smattering of sesame seeds, this one is a perfect companion for your
Sunday morning nihari. Or anything else you like. We won't tell you how to eat your kulcha.
Serves 1
Rs.10
Roghni Naan
The plain naan gets the royal treatment. Double the size, thicker dough, coated with sesame seeds, and brushed
delicately with a touch of ghee.
Serves 1
Rs.40
Kalonji Naan
Like your seeds black instead of white. We've got you covered. Peshawar's finest export to the rest of the
country after Boom Boom, our kalonji naans are as majestic as the seeds that encrust it.
Serves 1
Rs.50
Tandoori Paratha
Quite simply, our tandoori paratha is second to naan.
Serves 1
Rs.40
Nutella Naan
Yes, you heard that right. Nutella. In a naan. A generous dollop of yummy Nutella chocolate ladled across a
naan, packed tightly, and cooked to perfection. Warning. it's addictive.
Serves 1
Rs.170
Chicken Teryaki
Serves 1
Rs.230
Tarragon Chicken
Serves 1
Rs.230
Baby Nutella naan
1 Piece
Rs.70
Rolly Poly
Serves 1
Rs.150
Serves 2
Rs.220
Plain Roti
A plain roti. Works with all ages, occasions, and saalans
Serves 1
Rs.6
Khameeri Roti
The plain roti's prettier sister. Soft, puffy, and delightful
Serves 1
Rs.8
Pizza Naan
Quite simply, our tandoori paratha is second to naan.
Serves 1
Rs.190
Chicken Achari Nan
Serves 1
Rs.200
Potato and Spinach
Serves 1
Rs.80
Garlic Naan
Garlic so good, even Count Dracula can't keep away from it. Embellished with a dash of spice to get your taste
buds going.
Serves 1
Rs.50
Beverages
Spanish Margarita
Serves 1
Rs.130
Pina Colada
Serves 1
Rs.160
Mint Margarita
Serves 1
Rs.120
Nutella Lassi
Serves 1
Rs.160
Strawberry Lassi
Serves 1
Rs.130
Mango Lassi
Serves 1
Rs.130
Gurr Wali Lassi
Serves 1
Rs.110
Namkeen Lassi
Serves 1
Rs.100
Meethhi Lassi
Serves 1
Rs.100
Black
Serves 1
Rs.170
Espresso Shot
Serves 1
Rs.140
Hazelnut
Serves 1
Rs.190
Caramel
Serves 1
Rs.190
Mineral Water
Small
Rs.40
