Entrepreneurial Cost Analysis - Planning and Decision-Making Techniques for SMEs
Tonny, a young entrepreneur, turns his passion for baking into a growing business using cost accounting to guide key decisions. Can he turn his love for cakes into a profitable café venture through smart cost management?
At a glance
Country
Thailand
Industry
Bakery & Beverage
Business Type
Sole Proprietorship/ Home-based SME
Case Focus
Cost Accounting
Abstract
Tonny’s Bakery follows the journey of a young Bangkok-based entrepreneur who transforms a personal passion for baking into a growing small business venture. Beginning with a home-based orange cake operation, Tonny gradually expands his product portfolio, customer base, and business activities by applying key managerial accounting and cost management concepts, including direct and indirect costs, fixed and variable costs, contribution margin analysis, and break-even analysis.
This case study examines Tonny’s major business decisions as demand increases, including investments in production equipment, pricing adjustments, marketing expenditure, product diversification, and expansion into Thailand’s growing café and beverage market. Through analyses of cost-volume-profit (CVP) relationships, mixed costs, product profitability, and strategic expansion opportunities, learners evaluate how cost information can support entrepreneurial decision-making and sustainable business growth. The case ultimately challenges students to determine whether expanding into a dedicated café business represents a financially viable next step in Tonny’s entrepreneurial journey.
Key Topics: Managerial Accounting, Cost Accounting, Entrepreneurial Decision Making, Cost-Volume-Profit (CVP) Analysis, Break-Even Analysis, Pricing Strategy, Small Business Management, Product Profitability Analysis, Business Expansion Strategy, SME Growth
Cover Photo: Elle inlom, Unsplash
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Disclaimers:
(1) Regarding Case Study Content: This case study is based mainly on secondary data and analysis of publicly available information unless otherwise stated, and is intended solely for educational purposes. Any opinions expressed by the author(s) are designed to facilitate learning discussion and do not serve to illustrate the effectiveness of the company. Additionally, banner images and logos used in the case study are intended for visualization in an educational setting and it is not used to represent or brand the company. For any dispute regarding the content and usage of images and logos, please contact the team.
(2) Regarding University Affiliation and Titles of Authors: The university affiliation and titles of author(s) seen in the case study is based on their affiliation and title during the time of publication. It may or may not represent the current status of said author(s).
