Problems existing in variable cost method of catering enterprises

Problems of variable cost method in catering enterprises;

1, the traditional thinking mode has not changed, and the method is not used correctly. The expansion speed of small and medium-sized enterprises in China is amazing. For a long time, enterprises have been using traditional cost accounting methods, so it is difficult to change from traditional thinking mode to variable cost method. Because of the similarity between variable cost method and traditional cost method, it is easy to be confused in practical application.

2. The product pricing consideration is not comprehensive enough, resulting in deviation. The product cost calculated under the variable cost method is only a part of the total cost, that is, the variable cost. Although the intermediate index of marginal contribution can let managers intuitively see the profitability of products, putting fixed costs into the period expenses will reduce the cost of products and lead to low product pricing.

3. The application of variable cost method is difficult to meet the requirements of external financial reporting. The application of variable cost method will have an impact on the measurement results of income tax, inventory value and profit and loss, because the fixed cost is included in the profit and loss as a period expense in the accounting of variable cost method, so the inventory cost of enterprises will be reduced.