Statement of Cost for Baskin Robbins

Burt Baskin and Irvine Robbins founded Baskin Robbins in 1953. Its headquarters are located in Canton Massachusetts, although it was started in Glendale, California. The company’s founders merged their ice cream companies in 1953 to create the global brand. Baskin Robbins has over 5800 locations worldwide, and is in operation in more than 30 countries.

The company became famous for its 31 flavours concept, which was a lot in those days. The reason for using the number 31 was because it was more than the 28 flavours offered at Howard Johnsons restaurants, and also because a customer could have a flavour for every day of the month. They launched this campaign with the slogan “Count the Flavours. Where flavour counts.” The company’s founder’s thought that their customers should be allowed to taste flavours till they decided upon one to buy, this was the origin of their iconic pink spoon.

Cost Unit:

A cost unit is a device or the purpose of breaking up or separating cost into smaller subdivisions attributable to products and services. It is the unit of product, service or time in relation to which costs may be ascertained, e.g., tonne in case of coal. It must be clearly defined and selected before the process of cost finding can be started. It must not be too big or too small and must be so selected that expenditure can be associated with it and is appropriate to the needs of the business.

The cost unit of Baskin Robbins would be Litres or Kilograms.

The ideal costing system is that which achieves the objectives of a costing system and brings all advantages of costing to the business.

In the case of Baskin Robbins, Process Costing is the most suitable.

Process costing is suitable for industries where production is continuous, manufacturing is carried on by distinct and well defined processes, the finished product of one process becomes the raw material of the subsequent process, different products with or without by-products are...