Yogurt Vi (pronounced vee) is a frozen yogurt restaurant withseveral locations in Ohio. Customers will select the flavor offrozen yogurt they want and fill their cup from the self-servemachine with the desired amount of the frozen yogurt. Next thecustomer will proceed to the toppings bar, where they can selectfrom 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 thecustomer has finished adding toppings, the customer then proceedsto the cash register where the cup of frozen yogurt and toppings isweighed. The customer is charged a flat fee of $0.48 per ounce.
Questions 1: Do you think that Yogurt Vi pays the same amount toits suppliers 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-serve machines?
Question 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.
Question 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.
