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Hop‐portunity Lost? Spetz Brewery Considers a Pale Future
Author(s) -
Steeves Heather,
Laplante Joanne,
MacDonald Robert A.
Publication year - 2019
Publication title -
accounting perspectives
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.238
H-Index - 17
eISSN - 1911-3838
pISSN - 1911-382X
DOI - 10.1111/1911-3838.12199
Subject(s) - operationalization , brewing , context (archaeology) , margin (machine learning) , relevance (law) , business , product (mathematics) , marketing , computer science , paleontology , philosophy , chemistry , geometry , food science , mathematics , epistemology , machine learning , fermentation , political science , law , biology
This case seeks to have students operationalize the managerial accounting concepts of relevance and cost allocation within a retail context. Spetz Brewery is a division of an on‐premises wine and beer‐making business in Moncton, NB. Manager Nancy Wheeler is examining company financial performance to determine the veracity of her belief that the on‐premises brewing segment of the business is unprofitable. Product information is provided to allow contribution margin calculations. In addition, students must determine whether the deteriorating results detailed in the company's financial statements are the result of the problem identified by the manager or whether there are in fact additional issues that need to be addressed.