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Title: local 365

Essay Details:

Subject: Business
Author: Linda L
Date: October 6, 2014
Level: University
Grade: A
Length: 3 / 832

Essay text:

For example when calculating the cost of a prima rib, Josh the line cook takes into account only the direct material cost of meat and salad which is only the incremental cost i.e. change in variable cost in producing an extra unit of the dish. The management on the other hand takes a different way of calculating the cost of meals consumed by employees. Instead of just considering the incremental costs they also include various other costs like fixed cost allocated to each dish. Such costs include the fixed overhead costs like cost of over used, cost of permanent cook and other kitchen staff etc...

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