Would Yogurt Vi use job costing or process costing in calculating the cost of a customer's cup...

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Accounting

Would Yogurt Vi usejob costing or process costing in calculating the cost of acustomer's cup of frozen yogurt and toppings?

Yogurt Vi (pronouncedvee) is a frozen yogurt restaurant with several locationsin Ohio. Customers will select the flavor of frozen yogurt theywant and fill their cup from the self-serve machine with thedesired amount of the frozen yogurt. Next the customer will proceedto the toppings bar, where they can select from a large variety oftoppings including strawberries, kiwis, gummy bears, chocolatechips, crushed Oreos, M&M candies, sprinkles, salted caramels,and many other toppings. Once the customer has finished addingtoppings, the customer then proceeds to the cash register where thecup of frozen yogurt and toppings is weighed. The customer ischarged a flat fee of $0.48 per ounce.

Questions

  1. Do you think that Yogurt Vi pays the same amount to itssuppliers for each of the toppings? For example, is it probablethat fresh strawberries cost the exact same amount as M&Mcandies? Do you think the toppings would cost the same amount asthe frozen yogurt mix that is put into the soft-servemachines?
  2. From a technical viewpoint, do you think Yogurt Viwould use a job costing system or a process costing system forcalculating the cost of each customer’s order? Explain.
  3. From a practical standpoint, do you think Yogurt Viwould use a job costing system or a process costing system forcalculating the cost of each customer’s order? Explain.

Answer & Explanation Solved by verified expert
4.5 Ratings (657 Votes)
AnswerDo you think that Yogurt Vipays the same amount to its suppliers for each of the toppings Forexample is it probable that fresh strawberries cost the exact sameamount as MM candies Do you think the toppings would cost thesame amount as the frozen yogurt mix that is put into thesoftserve machinesI dont assume    See Answer
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