Description: News came this past week that Canadians may be getting a bit of relief on rising food prices, at least where the cost of beef is concerned. Four meat packers, which together control 85% of Canada’s beef market, face a class-action lawsuit alleging that “the price of beef was fixed at an elevated, anticompetitive level.” Consumers may be somewhat cheered by the fact that in the United States in February a major packer paid out US$52.5 million regarding a price-fixing action, without admitting any liability.
Date: March 30, 2022
1) Are you a beef eater? What have you noticed about beef prices in your university town?
2) What sort of changes can you recommend to help deal with the impact of rising beef prices?
3) Page 8-2 in Wiley’s Managerial Accounting: Tools for Business Decision-Making provides a feature story on the cost allocation methods of Maple Leaf Foods, a major producer of packaged meats. What costing method does Maple Leaf Foods use to come up with a value for inventory on its financial statements?