From the course: Accounting Foundations: Managerial Accounting
Join today to access over 25,300 courses taught by industry experts.
Understanding production costs
From the course: Accounting Foundations: Managerial Accounting
Understanding production costs
- What's your favorite restaurant? - That's easy, Los Hermanos, Center Street, Provo, Utah. They specialize in Mexican food. - Okay, what's your favorite meal at Las Hermanas? - Los Hermanos. - Oh. - Chips and salsa, guacamole dip, beef quesadilla, side order of refried beans. - Okay, how much do you pay for all that? - With tip, I pay about $18. - All right, now the hard question. How much does it cost Las Hermanos - Los. - to provide the meal to you? In other words, they're selling it to you for $18. How much does it cost them? - Now, I've never thought about that. Let's see. There's the cost of the materials, the avocado, the refried beans, the chips, all those things. - What else in addition to the cost of the materials? - Well, there's the labor costs, so the servers, the cooks, the people who clean up when you're done eating. - Is that it? - No, there's the salary of the store manager. There's rent…
Practice while you learn with exercise files
Download the files the instructor uses to teach the course. Follow along and learn by watching, listening and practicing.
Download courses and learn on the go
Watch courses on your mobile device without an internet connection. Download courses using your iOS or Android LinkedIn Learning app.