What are the product and period costs associated with a Broadway theater bar?

Broadway theaters saw record attendance in the 2014 – 2015 season, with ticket sales up 7.3% over the prior season (“Theater Bars Are a Smash Hit on Broadway,” Wall Street Journal, December 28, 2015.) As a result, private hospitality companies who operate bars in Broadway theaters have experienced sales growth as well.

One such hospitality company is Sweet Hospitality Group, or SHG.  SHG operates bars in more than 25 Broadway and off-Broadway theaters.  The SHG bars offer a wide choice in wines, spirits, and beers. In addition, SHG employs a mixologist, Michael De Mono.  De Mono will create show-themed cocktails, such as the Shadow Kiss for “The King and I.” The Shadow Kiss is a margarita flavored with green curry and pineapple.  Another De Mono cocktail is the Almigh-tea for “The Book of Mormon.” The Almigh-tea is an iced tea with bourbon and a rhubarb liqueur.

SHG bars have also expanded to offer food.  Choices might include artisanal cheese plates, Portobello mushroom sandwiches, beet and plantain chips, and other gourmet food options.

SHG employs actors and performers to staff the theater bars.


  1. SHG is operating the bar at the New Amsterdam Theater on Broadway. The current show is Aladdin. List as many of each of the following costs as you can think might be incurred:
    1. Direct materials
    2. Direct labor
    3. Overhead
  2. What period costs might SHG incur related to operating the 25 Broadway and off-Broadway bars? List as many period costs as you can imagine SHG might incur in a year.

Instructor Resources

These resources are provided to give the instructor flexibility for use of Accounting in the Headlines articles in the classroom. The blog posting itself can be assigned via a link to this site OR by distributing the student handout below. Alternatively, the PowerPoint file below contains a bullet point overview of the article and the discussion questions.

  • Student handout (pdf) (word) (contains entire blog posting + discussion questions)
  • PowerPoint file (brief article overview + discussion questions)

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 3.0 Unported License.

About Dr. Wendy Tietz, CPA, CMA, CSCA, CGMA

Dr. Wendy Tietz is a professor of accounting at Kent State University in Kent, Ohio, USA. She is also a textbook author with Pearson Education.

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