Posted by & filed under Managerial Accounting, Student life.

Description: The price of chocolate is heading up, adding particular pain to some Canadians as they mark the rising food prices in their budgets. Chocolate is made from cocoa, and the major growing region of West Africa suffered from drought and disease, reducing crop yields while essentially tripling the price. Olive oil is another case where bad weather sent harvests downward and prices up.

Date:  March 28, 2024



Discussion points:

1) How many of the students in your class are chocolate lovers? How many have felt the cocoa crisis in their own spending?

2) Have you changed any of your shopping habits to deal with inflation of food prices?

3) Page 2-3 of Wiley’s Managerial Accounting: Tools for Business Decision-Making introduces us to the three broad classifications of manufacturing costs. If you were a chocolate producer, which of these three classifications would you record your cocoa purchases in?

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