For Your Course Project, You Will Be Operating A Cookie Comp

For Your Course Project You Will Be Operating A Cookie Company Makin

For your course project, you will be operating a cookie company, making costing decisions, and performing analysis. In Module 06, you will make a presentation of your analysis. This Week, you will prepare a mission statement; set strategic, tactical, and operating objectives; decide on a company name; set cookie specifications, and decide on a cookie recipe. Additionally, you will calculate a standard cost per cookie and decide on an accounting system.

Develop a Microsoft PowerPoint presentation which concisely presents the following information regarding your cookie company: consider the company's mission—whether you will focus on quality, volume, or satisfying a niche market—and decide if you will use a traditional brick-and-mortar storefront or eCommerce to sell your products. Identify your target market, expansion plans, and main products. Specify your operational location, and craft a mission statement that reflects these decisions.

Based on your company's mission, describe the long-range goals, strategies, and objectives that your company will pursue. For example, you might aim to increase sales by a certain percentage annually, expand the number of stores, or co-brand with another product. Decide on a company name that aligns with your vision and target market.

Determine the cookie specifications, including size, color, key ingredients, appearance, quantity, and packaging. Develop a cookie recipe that supports your mission and specifications. Create a job cost card for your cookie recipe, and calculate the standard cost per cookie. Assume overhead is allocated at a rate of $2 for every $1 of labor cost. List some of the costs you will include in overhead, such as utilities, maintenance, and indirect labor.

Choose between a job order or process accounting system based on the nature of your production—explain why you selected this system. Include a diagram illustrating the flow of costs through your chosen accounting method, showing how costs are accumulated and allocated from raw materials to finished goods.

Paper For Above instruction

Introduction

Launching a successful cookie company requires careful planning, strategic decision-making, and effective management of costs. The foundation begins with defining a clear mission statement, setting specific objectives, and establishing operational parameters. This paper details the process of designing a cookie business from mission formulation to costing and accounting systems, emphasizing aligning operational choices with overarching business goals.

Company Mission and Strategic Focus

The mission of the cookie company revolves around delivering high-quality, innovative cookies that cater to health-conscious consumers. The focus is on providing premium, natural ingredients with a touch of unique flavors to create a niche product line. The company plans to operate initially through an eCommerce platform, leveraging digital marketing channels to reach a targeted demographic of young professionals aged 25-40. The long-term vision includes expanding into select retail stores and establishing a regional presence within five years.

The company's strategic objectives include increasing annual sales by 15%, developing new flavors bi-annually, and establishing co-branding partnerships with local coffee shops. Tactical goals involve establishing an efficient supply chain, sourcing sustainable ingredients, and creating a memorable brand identity centered on quality and innovation. Operational objectives focus on maintaining consistent product quality, minimizing waste, and optimizing production costs.

Company Name and Operational Location

The chosen company name is "NicheBite Cookies," reflecting the company's focus on distinctive, niche-oriented products. The primary operational location is a small manufacturing facility within an urban area conducive to direct eCommerce distribution, with future expansion into regional markets.

Cookie Specifications and Recipe Development

The cookies are designed to be bite-sized, measuring approximately 2 inches in diameter, with a golden-brown appearance and a slightly chewy texture. Color is a warm caramel hue, achieved through natural ingredients like molasses and brown sugar. Key ingredients include organic whole wheat flour, pure vanilla extract, organic butter, and organic sugar, with optional inclusions such as dark chocolate chips or cranberries. Packaging will consist of recyclable plastic containers designed to maintain freshness, with each package containing six cookies.

The recipe developed supports the company's emphasis on quality and natural ingredients. A standard batch produces 60 cookies, with ingredient quantities adjusted proportionally for smaller or larger batches.

Costing and Job Cost Card

The job cost card accounts for direct materials, direct labor, and manufacturing overhead. Direct material costs include flour, sugar, butter, vanilla, and inclusions, totaling approximately $0.50 per cookie. Direct labor involves wages of bakers and packaging staff, estimated at $0.25 per cookie based on time studies. Overhead, allocated at $2 for every $1 of direct labor cost, includes utilities, equipment depreciation, and factory supplies.

Calculating the standard cost per cookie involves summing these components:

• Materials: $0.50
• Labor: $0.25
• Overhead ($2 for every $1 of labor): $0.50

Thus, the total standard cost per cookie approximates $1.25, positioning the product competitively within premium snack markets.

Accounting System Choice and Cost Flow Diagram

The company will utilize a process costing system, appropriate for continuous, homogeneous production processes such as cookie baking. Process costing facilitates average cost calculation across batches, ensuring consistent pricing and cost control. This approach simplifies valuation, especially in high-volume production scenarios where individual batch tracing is inefficient.

The flow of costs begins with raw materials being issued to the production department, where direct material and labor costs are accumulated. Overhead is allocated based on direct labor costs. Costs then flow through work-in-progress inventory, and upon completion, move to finished goods inventory. The diagram below illustrates this process:

In conclusion, establishing a clear mission, robust costing, and appropriate accounting methods are crucial steps for the success of NicheBite Cookies. These decisions support sustainable growth, product quality, and financial control, laying the groundwork for a profitable and reputable business in the competitive cookie market.

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