Case Name :      Wendy’s Chili: A Costing Conundrum

Authors :           E. Richard Brownlee II

Source :             Darden School of Business

Case ID :           UV1739

Discipline :        Accounting

Case Length :    10 pages

Plagiarism : NO (100% Original work)

This case poses the seemingly simple and straightforward question, “How much does it cost Wendy’s to make a bowl of chili?” Because most of the meat used in making chili comes from overcooked hamburgers, however, a question of cost allocation arises. Wendy’s is considering adding a salad bar to its “limited menu” and is wondering whether it should then drop an existing product. Such a decision leads to an evaluation of present-product profitability.