Truffle in paradise: Job costing for a small business

Kimberly A. Zahller

Journal of Accounting Education, 2017, vol. 40, issue C, 32-42

Abstract: Textbooks and case studies that simply provide direct materials and direct labor costs for job costing problems do not give the reader a true picture of the difficulty in developing these costs, especially for small business owners. “Truffle in Paradise” presents a case based on a very real situation where the entrepreneur, Thor Rasmussen, has started a premium truffle business in his spare time; the business is growing but Thor has no idea if it is profitable because he has not costed his truffles and does not know if his prices are appropriate. The case walks you through the process of determining the costs of his truffles, applying a costing model to analyze his prices, performing sensitivity analyses on labor and material costs, and producing a pro-forma income statement. Student feedback reported that the case opened their eyes to the complexity of costing and planning in small businesses.

Keywords: Job costing; Developing standard costs; Costing model; Segmented income statement (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0748575116301348
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:joaced:v:40:y:2017:i:c:p:32-42

DOI: 10.1016/j.jaccedu.2017.02.003

Access Statistics for this article

Journal of Accounting Education is currently edited by Natalie Tatiana Churyk

More articles in Journal of Accounting Education from Elsevier
Bibliographic data for series maintained by Catherine Liu ().