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Case
| HBS Case Collection
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1992
(Revised from original version)
Direct Product Profitability at Hannaford Brothers Co.
by
Walter J. Salmon
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Abstract
Concerns the pioneering use of a method of accounting in retailing which takes into account not only sales and the cost of goods sold but, at the item level, all of the variable costs associated with each item that is sold. Focuses on the strengths and weaknesses of Hannaford's use of Direct Product Profit and the opportunities and obstacles in the way of the improvement and extension of the Direct Product Profit system.
Keywords: Accounting;
Cost;
Price;
Sales;
Opportunities;
Retail Industry;