Managerial Tools for Business Cost Management and Decision Making: The Case of the Wine Cellar

This paper presents development of a model for arrangement of indirect costs in wine production with an aim to gain better information for decision making. Wine producing companies face with constantly growing share of indirect costs in comparison to all other costs. Consequently the importance of their redeployment is becoming even more important in order to gain better cost information about each particular product. The model has been developed on basis of existing business process which gives the model a key differentiation in comparison to the existing ways of cost allocation. Moreover, such an approach includes all key business factors that should be considered in wine industry and is therefore directly applicable to »Goriška Brda« Wine Cellar. By taking into account additional wine-trade related factors/variables the model could also be used for indirect cost-allocation in other wine-trading related businesses.