Bak Funeral Home is based on a real situation occurring at a family‐owned funeral home in the northern United States. Following the founder's death, his family must decide what to do with the business and tangible assets. Students assume the role of a CPA called upon to advise the client on how to pass the business to the next generation. They encounter an ambiguous situation in which both monetary and nonmonetary factors must be carefully considered. The case is suitable for use in: an undergraduate cost accounting course; an entrepreneurial course in family business issues; or an introductory cost accounting class at the M.B.A. level. Additional topics covered include: the pro forma cash flow statement; business valuation; cash flow return on investment; and business risk.