Question

Would Yogurt Vi use job costing or process costing in calculating the cost of a customer's cup of frozen yogurt and toppings?

Yogurt Vi (pronounced vee) is a frozen yogurt restaurant with several locations in Ohio. Customers will select the flavor of frozen yogurt they want and fill their cup from the self-serve machine with the desired amount of the frozen yogurt. Next the customer will proceed to the toppings bar, where they can select from a large variety of toppings including strawberries, kiwis, gummy bears, chocolate chips, crushed Oreos, M&M candies, sprinkles, salted caramels, and many other toppings. Once the customer has finished adding toppings, the customer then proceeds to the cash register where the cup of frozen yogurt and toppings is weighed. The customer is charged a flat fee of $0.48 per ounce.

Questions

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

Answer 1

Answer :-

Do you think that Yogurt Vi pays the same amount to its suppliers for each of the toppings? For example, is it probable that fresh strawberries cost the exact same amount as M&M candies? Do you think the toppings would cost the same amount as the frozen yogurt mix that is put into the soft-serve machines?

• I don't assume Yogurt Vi pays a similar add up to its providers for every one of the fixings.
• Cost of various materials are extraordinary.
• I don't assume that fixings would cost equivalent to solidified yogurt blend.
• The elements of garnishes and solidified yogurt are unique. So their cost will likewise be unique.

From a technical viewpoint, do you think Yogurt Vi would use a job costing system or a process costing system for calculating the cost of each customer’s order? Explain.

• From a specialized stance, Yogurt Vi should utilize work costing for every client request in light of the fact that the materials like solidified yogurt flavor and garnishes for every client request will be extraordinary.
• So cost for each request ought to be founded on the flavor and the garnishes utilized.

From a practical standpoint, do you think Yogurt Vi would use a job costing system or a process costing system for calculating the cost of each customer’s order? Explain.

• From a down to earth angle, Yogurt vi would utilize process costing since the measure of garnish and solidified yogurt isn't referred to independently as the fixings and yogurt are weighed together at money register.
• Additionally the flavor and garnish chosen by the client isn't followed.
• So the expenses of various flavors and garnishes can't be doled out explicitly to every client request.