Professor Elam

Thursday July 2, 2015

We are studying managerial accounting in Summer II. Here is a story on how Trader Foe's sells wine for $1.99 a bottle. Since 2002 they have moved 800 million bottles of wine off the shelf. 

The way they do it is classic managerial accounting. The winery uses cheaper real estate, lighter weight bottles and cartons, lighter corks, and oak chips for fermenting rather than barrels. It all add up or rather subtracts out for a lower cost.