Life-cycle cost analysis of wine processing to identify major opportunities for process efficiency improvements
The original concept of activity-based costing was developed for manufacturing industries and these have been adapted to wineries in this project. An activity based costing (ABC) model provides a tool to quantify life cycle costs of production activities. These costs can include depreciation, waste, resource and other business costs. This project found ABC is a useful tool for enabling wineries to make informed decisions about increasing efficiency, competitiveness and profitability.