Activity Based Costing


J

Jim

Does anybody know if it is possible to apply ABC principles to the food service industry where the product is perishable?
 
K

Ken Russell

It would certainly give you a good indication of the full cost of each
product irrespective of whether it is perishable or not. Just because all
the costs are expensed in the case of perishable food does not bar them from
being allocated to products based on activity.
 
J

Jim

Thanks for the reply.

Jim
It would certainly give you a good indication of the full cost of each
product irrespective of whether it is perishable or not. Just because all
the costs are expensed in the case of perishable food does not bar them from
being allocated to products based on activity.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top