This paper describes an instructional approach that introduces students to entrepreneurial decision-making and a practical way of learning the basics of short-term profit planning. Using a familiar frame of reference, students conceive of a food product to sell in a booth at a one-week carnival or local community festival, estimate the costs involved in producing and selling the product, ascertain an appropriate selling price for the product, and examine the feasibility of the one-week venture using cost-volume-profit (CVP) analysis. The project involves research, analysis, decision-making, and written communication-all of which are sought-after competencies in the marketplace. In addition, the project affords students an opportunity to enhance their Excel-based skills. The project is intended to engage students in a realistic context that reinforces core profit-planning concepts learned in the classroom.
This article is from the Accounting Instructors’ Report, an electronic journal that provides teaching tips and insights to those who teach accounting and other business courses.
Sunita Ahlawat, Ph.D., he College of New Jersey
C. Andrew Lafond, CPA, DBA, La Salle University