You are to consider your favourite local take-away food place eg KFC, Hungry Jacks, Red Rooster, McDonalds, Dominos, local Chinese Takeaway, local fish and chip shop etc. Select one major product that the business actually prepares itself eg piece of crumbed fish; pizza, hamburger, serving of four spring rolls, chicken meal. Your product CANNOT be one that is simply purchased and resold as purchased eg can of Coca Cola or a packet of chewing gum. With this business and product in mind, answer the following questions:
1. List all the costs that would have to be considered when costing and ultimately pricing this product.
2. Indicate whether the above costs are fixed or variable in relation to the sales of your chosen product.
3. Indicate which costs are direct and indirect in relation to the cost object – your chosen product