Article Title: The restaurant with dynamic costing
The article at hand narrates the unfortunate experiences of a group of punctilious cost accountants who wanted to run an eatery. They took into account all possible expenses for preparing their dishes, and set prices accordingly. However, they found that cost price fluctuates with differing rates of raw materials’ pricing in the market. They tried several measures to offset this, even compromising with their quality, but they were not satisfied with the outcomes. Al last, they came up with the policy of setting dynamic prices on their items, which could change on a day-to-day, or even hour-to-hour basis depending on their cost price expenditure. They ignored early warning signs of their business failing, like when the opening week drew less footfall. They continued in their ways until their customers proved dynamic choosers and stopped making their restaurant a priority to visit. Their eatery had to ultimately go out of business.
Words to learn from this Article:
Clientele: the body of people or organizations that are clients or customers of a business.
Floating: sporadic, not static or fixed.
Perishables: goods liable to spoil.
Proviso: a condition or stipulation.
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