Math for Wine Clubs

When you find the best wine club available, it’s a good bet that you’re joining along with a few thousand other people.  Honestly, that makes sense on a number of levels since it is natural to want the best of anything that you’re involved with right?

Anyway, the math for a wine club seems simple right?  I mean, money comes in, they buy wine and money goes out.  It’s not quite that simple though.  If we’re talking about accounting then there are some choices which the average club needs to make.  Mainly, what type of accounting systems are they going to use?

Straight line cash in and cash out accounting like a big business?  Or more complex, but appropiate, cost of goods sold? Cost of goods sold accounting takes into account the price that the wine club paid for each bottle of wine which was sold and  assumes that the club has enough money in the bank to pay for sufficient inventory levels.

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