Question

A grocery store’s analysis of a recent customer survey finds an increasing number of customers interested in being able to custom-order meals to go. Maria sees this as an opportunity to enter a niche market for busy families or individuals who want home-cooked meals with a variety of options and combinations, but who have little time. Maria already has an expansive deli, bakery, and prepared foods section in the store and sees this opportunity as a viable option to increase sales and its customer base. With meals to go, customers can choose from an array of options and can indicate the quantity of each item and the time of pickup. The customer simply pulls up in a designated spot at Maria’s and the food is brought to their car, packaged, and ready to take home to enjoy.

What type of costing system will work best for the Maria’s Market? What sales price information, cost information, and other options are important to this decision?

Answer 1

Job order costing

1. Job order costing will be the best costing system that maria can use to manage order and demands of an indiviual customer on time. With the help of this system maria can prepare order cost sheets on daily baisis, ledger of stock of friuts & vegetables, how much orders she recieved by the customer each day. This will help the business to control the wastage of raw material and manage on time deliveries.

2. Sale price, cost and other information is too important to manage the cost of each product, this will help to grow in the market and compete with the competitors and set a benchmark in market. The information about the sale price and cost price will help to decide the how much price and cost is to be increased or not as per the current scenerio. Moreover this will also help in finding the best strategies and model to incerase the sales and growth of a business.