Based on the knowledge you have gained about process and activity-based costing, and how they are applied to specific companies, choose one of these types and apply it to ABC farm.

Farm: Organic food is better for your familys health and the planet. Buying organic is a direct investment in the future of our food system, so its a choice you can feel good about. At ABC Farm, we successfully apply biological soil management principles and practices, which incorporate (and go beyond) organic production standards. ABC is a small scale farm located in Virginia, where we grow a diverse mix of vegetables and herbs on 6.5 acres. In addition to rejecting agricultural chemicals, we are searching for better ways to farm. We feed our soil, by working on soil quality using various strategies to regenerate top soil. In turn the solid feeds our plants. We pay great attention to diversity by implementing a cover crop system, rotating crops, and recycling unused plants back in the soil in the form of compost. We seek to understand the partnership between plants and soil microorganisms as well as increase the carbon content of our soil. We maintain diversity by keeping perennial plantings along the field edges and withing rows to attract pollinators and beneficial predatory insects to keep insect pests in check. These strategies, over time, will lead to production of more nutrientdense food. We create a beautiful, diverse, and productive ecosystem which provides conditions to be their healthiest, so our customers also enjoy good health.

Products sold: Fermented foods ( carrots, pickles, mushroom, kraut) in glass lid jars.

1) Based on your choice of the two, why do you think it makes sense to use this specific method?

2) Based on your knowledge of the farm's operations gathered from the website and the previous discussion question, explain how you would apply the method --- what are the costs involved and stages of production?