A Votre Sante Teaching Note

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The A Votre Santé (AVS) case is multi-faceted in that it requires students to incorporate operational measures into product costing results, and also to understand cost accounting from a variety of perspectives, such as:
Product versus period costs
Variable versus fixed costs
Activity based costing
Relevant costs and opportunity costs

Additionally, the case questions require both quantitative and qualitative analyses of the business issues faced by AVS. AVS has been used in a graduate-level managerial accounting class for MBAs, and would be most appropriate for an advanced undergraduate or a graduate-level accounting or MBA course.

The detail in the case is rich enough to support a variety
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Teaching Note: Exhibit 2 displays the calculations relevant to this decision. Chardonnay regular wine requires a 2 to 1 mixture of Chardonnay and generic white grapes. Therefore, the 18,000 pounds of Chardonnay grapes will be combined with 9,000 pounds of generic white grapes. The 27,000 pounds of grapes will result in an additional 9,000 bottles of new Chardonnay regular wine being produced. However, it will also result in a 3,000-bottle decrease in the amount of Blanc de Blanc wine produced, since some generic grapes will now be used for the Chardonnay-regular wine.

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