Abstract
The need to face growing competition, especially from emerging countries, and the uncertainty of performance, influenced by economic, climatic and environmental conditions, require wineries to accurately determine and control the costs of their products.
However, many of them are small-sized, often family-run businesses (such as in Italy), and may not be able to afford to implement cost accounting systems.
In this context, this study proposes a model to determine the full cost of a bottle of wine, starting from financial accounting information. To this end, the case of a small-sized, family-run, Italian winery of excellence is analysed.
The originality of this paper lies in its theoretical and practical implications. Within this stream of research, it provides a contribution to tackle the accounting and evaluating issues raised by such a product. Moreover, it can be used by wineries and insurance companies to improve their knowledge on the wine production cost.
References
Antonelli, V., D'Alessio, R. (2007). Casi di controllo di gestione. Metodi, tecniche, casi aziendali di settore. Milano: IPSOA.
Atrill, P., Mc Laney, E. J. (2009). Management Accounting for Decision Makers. London: Prentice Hall.
Bagnod, G., Chenal, G., Mazzarino, S. (2015). Valutazione dei costi di produzione e della redditività della filiera del vino in alcuni contesti aziendali regionali. Quaderno n. 3, Institut Agricole Régional. Retrieved from: http://www.iaraosta.it/wp-content/uploads/2016/12/Quaderno-3.pdf
Ball, T., Folwell, R. J., Watson, J., Keller, M. (2004). Establishment and Annual Production Costs for Washington Concord Grapes. Washington State University.
Blake, J., Amat, O., Moya, S. (1998). The drive for quality – The impact on accounting in the wine industry. Journal of Wine Research, 9(2), 75-85.
Bracci, E., Maran, L., (2012). The role and use of management accounting systems (MAS) in family firms: a case study. Piccola Impresa/Small Business, 3, 129-153.
Broccardo, L. (2014). Management Accounting System in Italian Smes: Some Evidences and Implications. Advances in Management & Applied Economics, 4(4), 1-16.
Brusa, L. (1995). Contabilità dei costi. Contabilità per centro di costo e activity based costing. Milano: Giuffrè.
Brusa, L. (2012). Sistemi manageriali di programmazione e controllo. Milano: Giuffrè.
Bubbio, A. (2002). Calcolo dei costi per attività. Activity Based Costing. Milano: Guerini e Associati.
Casini, L., Corsi, A. M., Daniele, C., Marinelli, N., Marone, E., Scozzafava, G. (2012). Contabilità analitica e sostenibilità economica del settore vitivinicolo: il caso del Chianti Classico. Economia&Diritto Agroalimentare, 17(1), 83-103.
Casini, L., Marone, E., Scozzafava, G. (2014). Management Accounting in the Winegrowing Sector: Proposal and Development of an “Ad Hoc” Control System. QUALITY Access to Success, 15(138), 70-73.
Chiucchi, M. S. (2012). Il metodo dello studio di caso nel management accounting. Torino: Giappichelli.
Ciaponi, F. (2005). Il controllo di gestione delle imprese vitivinicole. Milano: FrancoAngeli.
Cinquini, L. (2017). Cost management – Volume I, Giappichelli, Torino.
Cooper, R., Kaplan, R. S. (1988). Measure Costs Right: Make the Right Decision. Harvard Business Review, 66(5), 96-103.
Cooper, R., Kaplan, R. S. (1991). The Design of Cost Management Systems: text, cases, and readings. Englewood Cliffs, New Jersey: Prentice-Hall Inter.
Cooper, R., Kaplan, R. S. (1992). Activity Based System: measuring the cost of resource usage. Accounting Horizons, 6(3), 1-13.
Cooper, R., Kaplan, R. S., (1998). Cost and effect. Using integrated cost systems to drive profitability and performance. Boston: Harvard Business School Press.
Couto Viana, R., Lima Rodrigues, L. (2006). A special accounting treatment for regulated industries? The case of the Port wine Industry. Journal of Wine Research, 17(1), 11-34.
Creswell, J. W., Hanson, W. E., Clark Plano, V. L., & Morales, A. (2007). Qualitative reserach designs: Selection and implementation. The counseling psychologist, 35(2), 236-264
Cribari, A. (1953). Some remarks on a cost accounting system for medium sized wineries. American Journal of Enology and Viticulture, 4(1), 183-185.
D’Amato A. (2013), La gestione finanziaria delle imprese vitivinicole. Torino: Giappichelli.
Dal Poggetto, J. P. (1985). A Practical Guide to Winery Cost Accounting. California: Touche Ross.
De Marchi, V., Grandinetti, R. (2016). Industrial districts evolving in glocal value chains: evidence from the Italian wine industry. Piccola Impresa/Small Business, 1, 10-36.
Dearden, J. (1978). Cost Accounting comes to service industries. Harvard Business Review, 56(5), 132-140.
Drury, C. (2008), Management and Cost Accounting. London: Thomson Learning.
Dumay, J. (2010). A critical reflective discourse of an interventionist research project. Qualitative Research in Accounting and Management, 7(1), 46-70.
Evans, P., Bellamy, S. (1995). Performance evaluation in the Australian public sector: the role of management and cost accounting control systems. International Journal of Public Sector Management, 8(6), 30–38.
Fickle, L. A. A., Folwell, R. J., Ball, T., Clary, C. (2005). Small Winery Investment and Operating Costs. Washington State University.
Garrison, R. H., Noreen, E. W., Brewer, P. C. (2010). Managerial accounting – 13th edition. NY: McGraw-Hill.
Gonzalez-Gomez, J. I., Morini, S. (2006). An Activity-Based Costing of Wine. Journal of Wine Research, 17(3), 195-203.
ISMEA (2017), Vino: scheda di settore. Retrieved from: http://www.ismeamercati.it/vino
ISTAT (2015), I risultati economici delle aziende agricole. Retrieved from: http://www.istat.it/it/archivio/166291
ISTAT (2017), L’andamento dell’economia agricola – anno 2016. Retrieved from: https://www.istat.it/it/files/2017/05/Andamento-economia-agricola-2016.pdf?title=Andamento+dell%E2%80%99economia+agricola+-+19%2Fmag%2F2017+-+Testo+integrale+e+nota+metodologica.pdf
Jönsson S., Lukka K. (2005). Doing interventionist research in management accounting. GRI-rapport 2005:6. VID Göteborgs Universitet, Handelshögskolan.
Kunc, M. H. (2007). A Survey of Managerial Practices in the Small to Medium Chilean Wineries. Journal of Wine Research, 18(2), 113-119.
Lee, J. Y., Jacobs, B. G. (1993). Kunde Estate Winery. How process andactivity-based cost analysis meets the needs of a small manufacturer.
CMA Magazine, 67(3), 15-19.
Lombardi, R., Manfredi, S., Nappo, F., Russo, G., (2015). A primary study on inter-company collaboration in the wine business sector: the coopetition perspective. Piccola impresa/Small Business, 2, 86-99.
Lopez-Valeiras Sampedro, E., Gonzalez Sanchez, M. B. (2008). Online tools for grape-growers: from theory to practice. Journal of Wine Research, 19(3), 175-184.
Lukka K., Kasanen E. (1995), The problem of generalizability: anecdotes and evidence in accounting research. Accounting, Auditing & Accountability Journal, 8(5): 71-90.
Marone, E., Bertocci, M., Boncinelli, F., Marinelli, N. (2017). The cost of making wine: a Tuscan case study based on a full cost approach. Wine Economics and Policy 6, 88-97.
Maxwell, J. A. (1946). Winery Accounting and Cost Control. New York: Prentice Hall.
Modell S. (2005). Triangulation between case study and survey methods in management accounting research: an assessment of validity implications. Management Accounting Research, 16(2): 231-254.
OIV (2017), La produzione di vino nel mondo 2017 – prima stima OIV. Retrieved from: http://www.inumeridelvino.it/2017/10/la-produzione-di-vino-nel-mondo-2017-prima-stima-oiv.html
Perera, S., Baker, P. (2007). Performance management practices in small and medium size manufacturing enterprises in Australia, Small Enterprise Research. 15(2), 10-30.
Pisoni, M. E., White, G. B. (2002). Writing a business plan: an example for a small premium winery. Departiment of Applied Economics and Management, Cornell University.
Pomarici , E., Rocco, L., Iannini, C. (2005). Redditività e Costi di Produzione dell’uva in Campania: confronto tra differenti condizioni di coltivazione. Working Paper n. 5, Dipartimento di Economia e Politica Agraria, Università di Napoli Federico II. Retrieved from: http://www.depa.unina.it/depa/WP_5_2005.pdf
Porter, M. E. (1985). Competitive Advantage. Creating and Sustaining Superior Performance with a new introduction. New York: Free Press.
Reddaway, M., Goodman, S., Graves, C. (2011). The role of accounting information in the management of winery SMEs: a review of the broader existing literature and its implications for Australia’s wine industry. Paper presented at the 6th AWBR International Conference, 9-10 June 2011, Bordeaux Management School. Retrieved from: http://academyofwinebusiness.com/wp-content/uploads/2011/09/92-1-
AWBR2011-Reddaway-Goodman-Graves.pdf
Rossi, M. (2013). Il wine business in un ambiente competitivo in cambiamento: scelte strategiche e finanziarie delle Pmi vitivinicole campane. Piccola Impresa/Small Business, 2, 11-36.
Seccia, A., Antonacci, D., Pomarici, E. (2012). Proposta metodologica per l'analisi dei costi di produzione dell'uva da tavola. In: Antonacci, D. (a cura di), Valorizzazione delle uve da tavola nel Mezzogiorno d'Italia (463-468). Bari: Mario Adda Editore.
Smith, R., Klonsky, K., Livingston, P., Tourte, L. (1993). Sample Costs to Establish a Vineyard and Produce Wine Grapes in Sonoma County. Retrieved from: http://www.unclefed.com/SurviveIRS/MSSP/wine.pdf
Spano, F. M. (2010). L’economia delle imprese vitivinicole. Milano: Giuffrè.
Staubus, G. J. (1971). Activity Costing and Input-Output Accounting. Illinois: Richard D. Irwin, Homewood.
Staubus, G. J. (1990). Activity Costing: Twenty years on. Management Accounting Research, 1(4), 249-264.
Welsh, J. A., White, J. F. (1981). A small business is not a little big business. Harvard Business Review, 59(4), 18-26.
Yeh, A. D., Gomez, M. I., White, G. B. (2014). Cost of Establishment and Production of V. Vinifera Grapes in the Finger Lakes Region of New York-2013. Department of Applied Economics and Management, Cornell University, Ithaca, NY.
Yin, R. K. (2003). Case study research: Design and methods. Thousand Oaks, Calif: Sage Publications.
Atrill, P., Mc Laney, E. J. (2009). Management Accounting for Decision Makers. London: Prentice Hall.
Bagnod, G., Chenal, G., Mazzarino, S. (2015). Valutazione dei costi di produzione e della redditività della filiera del vino in alcuni contesti aziendali regionali. Quaderno n. 3, Institut Agricole Régional. Retrieved from: http://www.iaraosta.it/wp-content/uploads/2016/12/Quaderno-3.pdf
Ball, T., Folwell, R. J., Watson, J., Keller, M. (2004). Establishment and Annual Production Costs for Washington Concord Grapes. Washington State University.
Blake, J., Amat, O., Moya, S. (1998). The drive for quality – The impact on accounting in the wine industry. Journal of Wine Research, 9(2), 75-85.
Bracci, E., Maran, L., (2012). The role and use of management accounting systems (MAS) in family firms: a case study. Piccola Impresa/Small Business, 3, 129-153.
Broccardo, L. (2014). Management Accounting System in Italian Smes: Some Evidences and Implications. Advances in Management & Applied Economics, 4(4), 1-16.
Brusa, L. (1995). Contabilità dei costi. Contabilità per centro di costo e activity based costing. Milano: Giuffrè.
Brusa, L. (2012). Sistemi manageriali di programmazione e controllo. Milano: Giuffrè.
Bubbio, A. (2002). Calcolo dei costi per attività. Activity Based Costing. Milano: Guerini e Associati.
Casini, L., Corsi, A. M., Daniele, C., Marinelli, N., Marone, E., Scozzafava, G. (2012). Contabilità analitica e sostenibilità economica del settore vitivinicolo: il caso del Chianti Classico. Economia&Diritto Agroalimentare, 17(1), 83-103.
Casini, L., Marone, E., Scozzafava, G. (2014). Management Accounting in the Winegrowing Sector: Proposal and Development of an “Ad Hoc” Control System. QUALITY Access to Success, 15(138), 70-73.
Chiucchi, M. S. (2012). Il metodo dello studio di caso nel management accounting. Torino: Giappichelli.
Ciaponi, F. (2005). Il controllo di gestione delle imprese vitivinicole. Milano: FrancoAngeli.
Cinquini, L. (2017). Cost management – Volume I, Giappichelli, Torino.
Cooper, R., Kaplan, R. S. (1988). Measure Costs Right: Make the Right Decision. Harvard Business Review, 66(5), 96-103.
Cooper, R., Kaplan, R. S. (1991). The Design of Cost Management Systems: text, cases, and readings. Englewood Cliffs, New Jersey: Prentice-Hall Inter.
Cooper, R., Kaplan, R. S. (1992). Activity Based System: measuring the cost of resource usage. Accounting Horizons, 6(3), 1-13.
Cooper, R., Kaplan, R. S., (1998). Cost and effect. Using integrated cost systems to drive profitability and performance. Boston: Harvard Business School Press.
Couto Viana, R., Lima Rodrigues, L. (2006). A special accounting treatment for regulated industries? The case of the Port wine Industry. Journal of Wine Research, 17(1), 11-34.
Creswell, J. W., Hanson, W. E., Clark Plano, V. L., & Morales, A. (2007). Qualitative reserach designs: Selection and implementation. The counseling psychologist, 35(2), 236-264
Cribari, A. (1953). Some remarks on a cost accounting system for medium sized wineries. American Journal of Enology and Viticulture, 4(1), 183-185.
D’Amato A. (2013), La gestione finanziaria delle imprese vitivinicole. Torino: Giappichelli.
Dal Poggetto, J. P. (1985). A Practical Guide to Winery Cost Accounting. California: Touche Ross.
De Marchi, V., Grandinetti, R. (2016). Industrial districts evolving in glocal value chains: evidence from the Italian wine industry. Piccola Impresa/Small Business, 1, 10-36.
Dearden, J. (1978). Cost Accounting comes to service industries. Harvard Business Review, 56(5), 132-140.
Drury, C. (2008), Management and Cost Accounting. London: Thomson Learning.
Dumay, J. (2010). A critical reflective discourse of an interventionist research project. Qualitative Research in Accounting and Management, 7(1), 46-70.
Evans, P., Bellamy, S. (1995). Performance evaluation in the Australian public sector: the role of management and cost accounting control systems. International Journal of Public Sector Management, 8(6), 30–38.
Fickle, L. A. A., Folwell, R. J., Ball, T., Clary, C. (2005). Small Winery Investment and Operating Costs. Washington State University.
Garrison, R. H., Noreen, E. W., Brewer, P. C. (2010). Managerial accounting – 13th edition. NY: McGraw-Hill.
Gonzalez-Gomez, J. I., Morini, S. (2006). An Activity-Based Costing of Wine. Journal of Wine Research, 17(3), 195-203.
ISMEA (2017), Vino: scheda di settore. Retrieved from: http://www.ismeamercati.it/vino
ISTAT (2015), I risultati economici delle aziende agricole. Retrieved from: http://www.istat.it/it/archivio/166291
ISTAT (2017), L’andamento dell’economia agricola – anno 2016. Retrieved from: https://www.istat.it/it/files/2017/05/Andamento-economia-agricola-2016.pdf?title=Andamento+dell%E2%80%99economia+agricola+-+19%2Fmag%2F2017+-+Testo+integrale+e+nota+metodologica.pdf
Jönsson S., Lukka K. (2005). Doing interventionist research in management accounting. GRI-rapport 2005:6. VID Göteborgs Universitet, Handelshögskolan.
Kunc, M. H. (2007). A Survey of Managerial Practices in the Small to Medium Chilean Wineries. Journal of Wine Research, 18(2), 113-119.
Lee, J. Y., Jacobs, B. G. (1993). Kunde Estate Winery. How process andactivity-based cost analysis meets the needs of a small manufacturer.
CMA Magazine, 67(3), 15-19.
Lombardi, R., Manfredi, S., Nappo, F., Russo, G., (2015). A primary study on inter-company collaboration in the wine business sector: the coopetition perspective. Piccola impresa/Small Business, 2, 86-99.
Lopez-Valeiras Sampedro, E., Gonzalez Sanchez, M. B. (2008). Online tools for grape-growers: from theory to practice. Journal of Wine Research, 19(3), 175-184.
Lukka K., Kasanen E. (1995), The problem of generalizability: anecdotes and evidence in accounting research. Accounting, Auditing & Accountability Journal, 8(5): 71-90.
Marone, E., Bertocci, M., Boncinelli, F., Marinelli, N. (2017). The cost of making wine: a Tuscan case study based on a full cost approach. Wine Economics and Policy 6, 88-97.
Maxwell, J. A. (1946). Winery Accounting and Cost Control. New York: Prentice Hall.
Modell S. (2005). Triangulation between case study and survey methods in management accounting research: an assessment of validity implications. Management Accounting Research, 16(2): 231-254.
OIV (2017), La produzione di vino nel mondo 2017 – prima stima OIV. Retrieved from: http://www.inumeridelvino.it/2017/10/la-produzione-di-vino-nel-mondo-2017-prima-stima-oiv.html
Perera, S., Baker, P. (2007). Performance management practices in small and medium size manufacturing enterprises in Australia, Small Enterprise Research. 15(2), 10-30.
Pisoni, M. E., White, G. B. (2002). Writing a business plan: an example for a small premium winery. Departiment of Applied Economics and Management, Cornell University.
Pomarici , E., Rocco, L., Iannini, C. (2005). Redditività e Costi di Produzione dell’uva in Campania: confronto tra differenti condizioni di coltivazione. Working Paper n. 5, Dipartimento di Economia e Politica Agraria, Università di Napoli Federico II. Retrieved from: http://www.depa.unina.it/depa/WP_5_2005.pdf
Porter, M. E. (1985). Competitive Advantage. Creating and Sustaining Superior Performance with a new introduction. New York: Free Press.
Reddaway, M., Goodman, S., Graves, C. (2011). The role of accounting information in the management of winery SMEs: a review of the broader existing literature and its implications for Australia’s wine industry. Paper presented at the 6th AWBR International Conference, 9-10 June 2011, Bordeaux Management School. Retrieved from: http://academyofwinebusiness.com/wp-content/uploads/2011/09/92-1-
AWBR2011-Reddaway-Goodman-Graves.pdf
Rossi, M. (2013). Il wine business in un ambiente competitivo in cambiamento: scelte strategiche e finanziarie delle Pmi vitivinicole campane. Piccola Impresa/Small Business, 2, 11-36.
Seccia, A., Antonacci, D., Pomarici, E. (2012). Proposta metodologica per l'analisi dei costi di produzione dell'uva da tavola. In: Antonacci, D. (a cura di), Valorizzazione delle uve da tavola nel Mezzogiorno d'Italia (463-468). Bari: Mario Adda Editore.
Smith, R., Klonsky, K., Livingston, P., Tourte, L. (1993). Sample Costs to Establish a Vineyard and Produce Wine Grapes in Sonoma County. Retrieved from: http://www.unclefed.com/SurviveIRS/MSSP/wine.pdf
Spano, F. M. (2010). L’economia delle imprese vitivinicole. Milano: Giuffrè.
Staubus, G. J. (1971). Activity Costing and Input-Output Accounting. Illinois: Richard D. Irwin, Homewood.
Staubus, G. J. (1990). Activity Costing: Twenty years on. Management Accounting Research, 1(4), 249-264.
Welsh, J. A., White, J. F. (1981). A small business is not a little big business. Harvard Business Review, 59(4), 18-26.
Yeh, A. D., Gomez, M. I., White, G. B. (2014). Cost of Establishment and Production of V. Vinifera Grapes in the Finger Lakes Region of New York-2013. Department of Applied Economics and Management, Cornell University, Ithaca, NY.
Yin, R. K. (2003). Case study research: Design and methods. Thousand Oaks, Calif: Sage Publications.
Copyright and licensing: The journal supports the principles contained in the Berlin Declaration on Open Access to scientific literature (2003), reiterated in the Italian CRUI Guidelines on Open Access journals. Copyright Notice: papers made open to the public are published under the CC BY--4.0 license.
Archiving : This journal uses the LOCKSS system to create an archiving system, which is distributed between participating libraries and enables them to search through the permanent archives of the journal for the purposes of conservation and restoration. All journal data and publications are also saved and stored directly on the platform