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Eat My Lunch is a New Zealand-based social enterprise whose mission is to harness the power of business to alleviate child hunger in New Zealand. The company operates on a "buy one, give one" model, where every time a customer buys any of its meal offerings (e.g., breakfasts, lunches), it gives a lunch to a child in need. To support its operations, Eat My Lunch relies on both permanent and volunteer staff. However, unlike most charities that operate based on donations/grants, Eat My Lunch wants to address child hunger in a financially sustainable way (i.e., making enough profit to sustain its operations). Therefore, accurate product costing is of paramount importance for Eat My Lunch.
Problem 1: Do see any potential conflict with the use of ABC system alongside using either a job-order costing or process costing system? Explain your answers.
Financial Statement Analysis and Preparation
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