Daniel Dobbins Distillery, Inc

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Case

Reference no. 9-189-065

Subject category: Finance, Accounting and Control

Authors: William J Bruns Jr (Harvard Business School)

Published by: Harvard Business Publishing

Originally published in: 1989

Version: 28 June 1993

Revision date: 10-Apr-2013

Length: 7 pages

Data source: Field research

Topics: Financial statements; Financing; Accounting; Accounting procedures; Cost allocation; Cost analysis; Costing; Inventory management; Loans

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Abstract

A distiller increases whiskey production and income declines because of accounting methods in use. Questions are raised regarding the treatment of expenditures which can be classified as production, inventory, or period costs. The necessary aging process raises added questions about prior period restatements and needed financing. A rewritten version of an earlier case by RF Vancil and RH Deming.

Location:

Tennessee

Industry:

Liquor distillery

Size:

USD42 million revenues

Other setting(s):

1988