Discussions Are Due Tomorrow At 12 P.m.

Discussions Are Due Tomorrow At 12pm1how Might An Organizations Cult

Discussions are due tomorrow at 12pm. 1) How might an organization’s culture reflect its established values? 2) Stellar Packaging Products and its primary customer, Estrella Coffee, are deciding on appropriate costing systems for their operations. Stellar Packaging Products’ manufacturing is conducted in batches, and many different applications are used as substrates, or packaging materials, upon which labeling is printed. These include paper, plastic, and metallic films. Estrella Coffee produces different types of coffee, however, the roasting and grinding for all types of coffee beans prepared is essentially the same. Identify the type of costing system that would be appropriate for each of the companies. Include any cost benefit considerations of each system and the effect of technology in adopting a system. For this discussion: Support your position.

Paper For Above instruction

Understanding Organizational Culture and its Reflection of Values

Organizational culture encompasses the shared beliefs, norms, and behaviors that characterize an organization. It serves as an intangible yet powerful force shaping decision-making, behaviors, and interactions within the company. One fundamental aspect of organizational culture is how it reflects the organization’s core values. For instance, a company that values innovation and agility will likely promote a culture that encourages experimentation, risk-taking, and continuous learning. Conversely, organizations that prioritize stability and tradition tend to foster cultures emphasizing consistency, adherence to policies, and risk mitigation. Therefore, the culture of an organization acts as a mirror of its established values, guiding employees' behaviors and shaping the organization's identity (Schein, 2010). Understanding the link between culture and values is crucial for leadership to cultivate environments that support strategic objectives and foster employee engagement.

Costing Systems for Stellar Packaging Products and Estrella Coffee

Effective costing systems are vital for accurately determining product costs, supporting strategic decision-making, and maintaining competitiveness. The manufacturing process characteristics of Stellar Packaging Products and Estrella Coffee influence the choice of cost accounting methodologies.

Stellar Packaging Products

Given its batch production process and the diversity of substrates used, a job-order costing system is most suitable for Stellar Packaging Products. This system allows for the allocation of costs to specific batches or jobs, accommodating the varying materials used—such as paper, plastic, and metallic films—and differences in application methods. Job-order costing provides clarity on the costs associated with each batch, enabling precise pricing and profitability analysis (Drury, 2018).

One significant benefit of a job-order costing system is its ability to track costs at a granular level, which is especially useful when products or batches are highly customized or vary substantially. The system’s flexibility lends itself well to integrating modern technology, such as Enterprise Resource Planning (ERP) systems, which facilitate real-time data collection and analysis, streamlining cost management (Kaplan & Anderson, 2004). Technological advancements reduce errors, improve efficiency, and support cost control initiatives that are crucial in batch manufacturing environments.

Estrella Coffee

Since Estrella Coffee manufactures various types of coffee with a consistent roasting and grinding process across all products, a process costing system would be most appropriate. Process costing accumulates costs across continuous processes, averaging costs over large quantities of similar units—ideal for standardization and mass production (Blocher et al., 2019). This approach simplifies cost determination and supports effective inventory valuation for consistent products.

Implementing process costing, especially automated through modern manufacturing execution systems (MES) and ERP platforms, can enhance accuracy and efficiency. These technologies allow for seamless tracking of raw materials, labor, and overhead costs, providing management with detailed insights to optimize production processes (Cambra-Fierro et al., 2021). The cost benefits include reduced administrative efforts, improved cost control, and consistent pricing strategies.

The Role of Technology in Costing Systems

Technological integration is transforming how organizations adopt and operate costing systems. For batch and custom manufacturing like Stellar Packaging, ERP and advanced costing software enable real-time cost tracking, error reduction, and data-driven decision-making. Such systems provide detailed insights into specific batches, facilitating better pricing and inventory management (Granlund & Malmi, 2002).

For standardized mass production like Estrella Coffee, automation in process costing through integrated manufacturing systems allows for continuous data flow and analysis, leading to improved accuracy and efficiency. Cloud computing and data analytics further enhance the ability to monitor costs, forecast trends, and streamline operations, ultimately supporting competitive pricing and profit maximization (Larrucea et al., 2020).

Conclusion

In conclusion, selecting the appropriate costing system depends on the nature of the manufacturing process. Job-order costing aligns well with batch production and diverse substrates, offering detailed cost tracking and flexibility, especially when supported by advanced technology. Process costing suits standardized products with continuous production, providing efficiency and simplicity, enhanced by modern systems. Understanding the role of technology in these systems is essential for organizations seeking to leverage digital solutions for accurate cost management and strategic advantage. Both companies can benefit immensely from tailored systems supported by contemporary technology, which facilitates better decision-making, cost control, and competitive positioning in their respective markets.

References

• Blocher, E., Stout, D., Juras, P., & Cokins, G. (2019). Cost Management: A Strategic Emphasis. McGraw-Hill Education.
• Cambra-Fierro, J., Fernández-González, L., & Mena, S. (2021). Digital Transformation in Cost Management: Rise of Industry 4.0. Journal of Management Control, 32(2), 105–132.
• Granlund, M., & Malmi, T. (2002). Moderate Turning: The Effects of Operating System Changes on Management Control at a Finnish Steel Company. Management Accounting Research, 13(3), 299–319.
• Kaplan, R., & Anderson, S. (2004). Time-Driven Activity-Based Costing. Harvard Business Review, 82(11), 131–138.
• Larrucea, J., Arruti, A., & Zorrilla, P. (2020). Digitalization and Cost Management in Manufacturing. Business Process Management Journal, 26(2), 463–478.
• Schein, E. H. (2010). Organizational Culture and Leadership. Jossey-Bass.
• Drury, C. (2018). Management and Cost Accounting. Cengage Learning.
• Jeffrey, P., & Maurer, R. (2017). An Introduction to Cost Accounting. Routledge.
• Hansen, D., & Mowen, M. (2018). Cost Management: A Strategic Emphasis. Cengage Learning.
• Hilton, R., & Platt, D. (2019). Managerial Accounting: Creating Value in a Dynamic Business Environment. McGraw-Hill Education.