Executive Solution Overview
see attachment – ## UnitVIITemplate.xlsx – ## VIIAssignmentCookieBusinessFinalProject.docx – ## UnitIIIcookies.pdf **## UnitVIITemplate.xlsx** ## Problem | | | | | | | | | | — | — | — | — | — | — | — | — | | | ABC Manufacuring | | | | | | Instructions: | | | Direct Labor Budget for t…
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see attachment
– ## UnitVIITemplate.xlsx
– ## VIIAssignmentCookieBusinessFinalProject.docx
– ## UnitIIIcookies.pdf
**## UnitVIITemplate.xlsx**
## Problem
| | | | | | | | |
| — | — | — | — | — | — | — | — |
| | ABC Manufacuring | | | | | | Instructions: |
| | Direct Labor Budget for the Year Ending Dec 31, 202X | | | | | | 1. Review the data given, fill in the information in yellow cells to determine number of employees needed. |
| | Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Year |
| Direct labor hours per unit | 1 | 1 | 1 | 1 | 1 |
| Labor rate per hour | $20.00 | $20.00 | $20.00 | $20.00 | $20.00 | | 2. Based on the calculations result and information given, address how this information can be useful for managers in terms of scheduling, planning, and control. Include ethical considerations in the budget process. Type your response in the box below. |
| Direct labor cost per unit |
| Units to be produced | 40,000 | 41,000 | 42,000 | 38,000 | 161,000 |
| Total direct labor cost |
| Total hours needed<br> <br>Thanasak Ruankaew: Author:<br>@ 1 labor hour per unit per row #4 | 40,000 | 41,000 | 42,000 | 38,000 | 161,000 |
| Average hours per quarter per employee<br> <br>Thanasak Ruankaew: Author:<br>Each employee can work 480 hours per quarter | 480 | 480 | 480 | 480 |
| Approximate number of employees needed<br> <br>Thanasak Ruankaew: Author:<br>Students may round up the value. |
| | | | | | | | 3. Brieftly address how regulatory and compliance requirements (e.g., minimum wage, benefits, safety, etc.) might impact labor costs and pricing decision. Type response in the below box. |
| Name: |
| Date: |
**## VIIAssignmentCookieBusinessFinalProject.docx**
**Cookie Business Final Project**
Now that your cookie business is well underway, you are going to use the knowledge that you have gained in this course to evaluate the financial information for the company. You will be creating a series of reports and analyzing the results using the templates provided to guide you through the project. In this final project, you will do the following:
1. Apply accounting concepts and standards to the creation of accounting information and reports.
2. Analyze accounting information used to make strategic business decisions.
3. Apply ethical behavior to accounting-related situations.
4. Make business decisions based on analyzing accounting data.
**Length:** Using the
[Unit VII Final Project Template](https://online.columbiasouthern.edu/bbcswebdav/pid-17551107-dt-asiobject-rid-118576101_1/xid-118576101_1), prepare an
**eight-to-twelve-page written report (including spreadsheets).**
**References:** At least three peer-reviewed sources are required, any additional resources used are required to be scholarly/academic in nature. APA Style is required for citations and references.
**Details:** First, start the paper with an abstract and introduction section, per the assignment template provided.
**Part 1:** Based on the data presented in the Unit VII Spreadsheet Template in Excel (CM Breakeven tab):
· Calculate the contribution margin (CM) for each of the three products sold at the cookie business.
· Calculate the weighted average CM.
· Calculate the breakeven point.
Complete your calculations by filling in the highlighted cells; embed a copy of the completed spreadsheet into this report. Discuss the results based on your calculations as far as which type of cookie you think is the most profitable, which has the highest CM, and such.
**Part 2:** Based on the data presented in the Unit VII Spreadsheet Template in Excel (Full Variable tab), complete the calculations listed below.
· Calculate the value of ending inventory under full or absorption costing.
· Calculate the value of ending inventory under variable costing.
Complete your calculations by filling in the highlighted cells; embed a copy of the completed spreadsheet into this report. Discuss the results, and comment on which method you think is more helpful to managers and why.
**Part 3:** Based on the data presented in the Unit VII Spreadsheet Template in Excel (Special Order tab), calculate the net increase or decrease in profit if they take the special order.
Complete your calculations by filling in the highlighted cells; embed a copy of the completed spreadsheet into this report. Discuss the results and comment on if you think the cookie business should take on this special order of cookies for a wedding. Business has been slow the last few months, and the offer is less than the usual selling price for the cookies.
As part of your discussion, include both quantitative (based on the numbers) and qualitative (not based on numbers) factors that would go into the decision to take on the special order, including pricing decisions.
**Part 4:** Based on the data presented in the
[Unit VII Spreadsheet Template](https://online.columbiasouthern.edu/bbcswebdav/pid-17551107-dt-asiobject-rid-182285656_1/xid-182285656_1) in Excel (IRR tab), calculate the internal rate of return (IRR) for the new equipment purchase.
Complete your calculations by filling in the highlighted cells; embed a copy of the completed spreadsheet into this report. Note: the PV Annuity table is provided for you. Discuss if you think the cookie business should accept or reject the purchase of the new equipment and why.
Additional information has come to your attention regarding the equipment purchase. One of the partner's brothers owns the company that sells the equipment and insists the equipment is needed. Discuss any ethical concerns you see with this type of transaction.
**Part 5:** Based on the data presented in the Unit VII Spreadsheet Template in Excel (Cash Budget tab), calculate the cash receipts for the first quarter of this year.
Complete your calculations by filling in the highlighted cells; embed a copy of the completed spreadsheet into this report. Discuss your observations about the way cash is collected if the company needs $150,000 per month for expenses.
**Part 6:** Based on the data presented in the Unit VII Spreadsheet Template in Excel (Variances tab), complete the following calculations.
· Calculate the material variances.
· Calculate the labor variances.
Complete your calculations by filling in the highlighted cells; embed a copy of the completed spreadsheet into this report. Discuss your observations about the variances and ways to plan to improve any of the variances.
End this paper with the key observations and present any future recommendations.
**## UnitIIIcookies.pdf**
0
Robert Benders
Unit III Assignment
Professor Steve Horan
Columbia Southern University
ACC-5301
10/20/2025
1
The Cookie Haven Company
Introduction
Entrepreneurship business ventures can be started with a rather simple idea, which is a
natural combination of passion and market opportunity. This is a project based on the launching
of a small-scale cookie business under the context of managerial accounting. This aims to know
how cost-accounting systems, namely job order and process costing, can be used to support
strategic decisions made by the business. This paper illustrates how managers use accounting
data to assess profitability, efficiency and sustainability of a single product cookie company by
generating and analyzing production, costing and pricing data of this company.
Part 1: Cookie Business Startup.
Business Name and Location:
The corporation will be called Cookie Haven Company and it will be situated within the
city of Savannah, Georgia, which is characterized by tourism and a high level of hospitality in
the south that will point to the steady flow of visitors.
Mission Statement:
To make new handmade cookies with quality ingredients and care of an artisan to provide
our customers with comfort and pleasure in every bite.
Type of Cookie:
The cookies that Cookie Haven will focus on are Sea Salt Chocolate Chip Cookies that
will consist of locally sourced chocolate and butter and light sprinkling of sea salt. The company
has one specialty cookie to sell which will enable it to stay consistent in quality and accurately
manage its cost preservation.
2
Part 2: Sales Information and Costing.
Job Order Costing
The job order system is characterized by the treatment of each batch (1,000 cookies) as a
special production job. The accumulated costs are direct materials, combined direct labor and
manufacturing overhead (30 percent applied manufacturing overhead).
Direct Materials (per 1,000 cookies) Estimated Cost (USD)
Flour – 15 lbs @ $0.80/lb $12.00
Sugar – 10 lbs @ $1.00/lb $10.00
Butter – 15 lbs @ $4.00/lb $60.00
Chocolate Chips – 10 lbs @ $3.50/lb $35.00
Sea Salt & Vanilla – combined $5.00
Total Direct Materials $122.00
Direct Labor:
Two bakers each earn $15/hour. For two days (16 total labor hours), the labor cost equals $480
(16 × $30).
Manufacturing Overhead:
At 30% of direct labor → $144 ($480 × 0.30).
Total Job Cost:
$122 (materials) + $480 (labor) + $144 (overhead) = $746.
Cost per cookie: $746 ÷ 1,000 = $0.75.
3
Process Costing – Mixing Department
The Mixing Department handles the first stage of production. For 1,000 cookies:
• Direct Materials: $122 (added at the start).
• Direct Labor: Two employees × 4 hrs × $15/hr = $120.
• Overhead (30% of labor): $36.
• Conversion Costs (labor + overhead): $156.
• Cookies are 100% complete for materials, 40% complete for conversion.
→ Equivalent units for conversion = 1,000 × 0.40 = 400.
→ Cost per equivalent unit (conversion) = $156 ÷ 400 = $0.39/unit.
→ Total cost transferred from Mixing = $122 + (400 × $0.39) = $278.
The process costing system thus tracks costs by stage rather than by batch.
Sales Price
To achieve a 40% profit margin:
$0.75 × 1.40 = $1.05 per cookie (retail price).
Thus, total sales for 1,000 cookies = $1,050, yielding $304 profit.
Part 3: Compare and Contrast Costing Methods
Job Order Costing:
Applied in case products are custom or in small batches. Every job contains special
material, labor and overhead costs. It offers cost tracking in detail; it is suitable in business
producing limited or specialty goods (Iyenhen and Sabit, 2023). Job order costing is
advantageous to Cookie Haven since it can provide specific cost information at each batch of
4
cookies; therefore, the manager can not only track the efficiency of the resources, but also easily
change the price.
Process Costing:
Applied in large-scale manufacturing facilities and used continuously when production
needs a uniform product (Weygandt et al., 2019). It makes the accounting easier through the
averaging of costs among all units produced. Although process costing is not that detailed when
handling individual jobs, it assists in assessing the efficiency at each production stage.
Comparison and Managerial Usefulness:
In the case of Cookie Haven, which is involved with small-scale specialty production, job
order costing would be handier due to the ability to get a detailed view of materials and labor
elements consumed by specific batches. Nevertheless, when the company grows and starts mass
production and has many departments then the process costing will provide excellent control of
cost per unit and accountability of departments. Neither of the two systems can replace the other:
job order costing is valuable when the order is small and process costing is valuable when the
order should be scaled too numerous in the long-term.
Part 4: Effect of Increase and Decrease of Sales.
The sales vary directly with the quantity of cookies sold. At a sell of over 1,000 cookies,
the total revenue would grow at a higher rate than total cost, as fixed overhead would be evenly
distributed among the more cookies, and profitability will be high. On the contrary, inadequate
sales decreases revenues but a lot of expenses (rent, utilities, salaried wages) stay constant,
lowering net income. As an illustration, by selling 1,500 cookies managing at $1.05 each, the
revenue would be 1,575, however, the expenditures can increase insignificantly to approximately
1,050 and boost the profits. Volume growth, therefore, increases profitability with economies of
5
scale. Nonetheless, changes in demand necessitate close planning of production that would avoid
wastage of inventory and excessive labor.
Conclusions and Recommendations.
This project shows the role of managerial accounting in making decisions that are data-
driven in case of a small business. Using the job order costing is an opportunity that Cookie
Haven Company can take advantage of to trace materials and labor costs per batch and change
prices dynamically. The costing that the company uses will develop process costing because the
production capacity is going to be increased. The relevant markup of 40% is constant so that
prices could remain competitive and the profitability would not be lost.
To continue growing in future, the company should:
1.Use accounting programs to regulate monitoring of expenses.
2.Periodically need to look at the prices of your ingredient suppliers to maintain margins.
3.Find wholesale deals with cafes or hotels to even out the sales volume.
Using cost-accounting principles, Cookie Haven should have the ability to grow as a
local bakery to a regional brand without disorder in its financial discipline and operational
structure.
6
References
Iyenhen, C., & Sabit, M. S. (2023). The Evolution and Development of Management
Accounting Theories and Practices: A Review of Theoretical Frameworks. Central Asian Journal
of Innovations on Tourism Management and Finance, 4(2), 40-54.
https://cajitmf.casjournal.org/index.php/CAJITMF/article/view/422
Weygandt, J. J., Kieso, D. E., Kimmel, P. D., Trenholm, B., Warren, V., & Novak, L.
(2019). Accounting Principles, Volume 2. John Wiley & Sons.
https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Wey
gandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.)
.+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o
[https://cajitmf.casjournal.org/index.php/CAJITMF/article/view/422](https://cajitmf.casjournal.org/index.php/CAJITMF/article/view/422)
[https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Weygandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.).+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o](https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Weygandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.).+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o)
[https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Weygandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.).+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o](https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Weygandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.).+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o)
[https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Weygandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.).+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o](https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Weygandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.).+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o)
**## UnitIIIcookies.pdf**
0
Robert Benders
Unit III Assignment
Professor Steve Horan
Columbia Southern University
ACC-5301
10/20/2025
1
The Cookie Haven Company
Introduction
Entrepreneurship business ventures can be started with a rather simple idea, which is a
natural combination of passion and market opportunity. This is a project based on the launching
of a small-scale cookie business under the context of managerial accounting. This aims to know
how cost-accounting systems, namely job order and process costing, can be used to support
strategic decisions made by the business. This paper illustrates how managers use accounting
data to assess profitability, efficiency and sustainability of a single product cookie company by
generating and analyzing production, costing and pricing data of this company.
Part 1: Cookie Business Startup.
Business Name and Location:
The corporation will be called Cookie Haven Company and it will be situated within the
city of Savannah, Georgia, which is characterized by tourism and a high level of hospitality in
the south that will point to the steady flow of visitors.
Mission Statement:
To make new handmade cookies with quality ingredients and care of an artisan to provide
our customers with comfort and pleasure in every bite.
Type of Cookie:
The cookies that Cookie Haven will focus on are Sea Salt Chocolate Chip Cookies that
will consist of locally sourced chocolate and butter and light sprinkling of sea salt. The company
has one specialty cookie to sell which will enable it to stay consistent in quality and accurately
manage its cost preservation.
2
Part 2: Sales Information and Costing.
Job Order Costing
The job order system is characterized by the treatment of each batch (1,000 cookies) as a
special production job. The accumulated costs are direct materials, combined direct labor and
manufacturing overhead (30 percent applied manufacturing overhead).
Direct Materials (per 1,000 cookies) Estimated Cost (USD)
Flour – 15 lbs @ $0.80/lb $12.00
Sugar – 10 lbs @ $1.00/lb $10.00
Butter – 15 lbs @ $4.00/lb $60.00
Chocolate Chips – 10 lbs @ $3.50/lb $35.00
Sea Salt & Vanilla – combined $5.00
Total Direct Materials $122.00
Direct Labor:
Two bakers each earn $15/hour. For two days (16 total labor hours), the labor cost equals $480
(16 × $30).
Manufacturing Overhead:
At 30% of direct labor → $144 ($480 × 0.30).
Total Job Cost:
$122 (materials) + $480 (labor) + $144 (overhead) = $746.
Cost per cookie: $746 ÷ 1,000 = $0.75.
3
Process Costing – Mixing Department
The Mixing Department handles the first stage of production. For 1,000 cookies:
• Direct Materials: $122 (added at the start).
• Direct Labor: Two employees × 4 hrs × $15/hr = $120.
• Overhead (30% of labor): $36.
• Conversion Costs (labor + overhead): $156.
• Cookies are 100% complete for materials, 40% complete for conversion.
→ Equivalent units for conversion = 1,000 × 0.40 = 400.
→ Cost per equivalent unit (conversion) = $156 ÷ 400 = $0.39/unit.
→ Total cost transferred from Mixing = $122 + (400 × $0.39) = $278.
The process costing system thus tracks costs by stage rather than by batch.
Sales Price
To achieve a 40% profit margin:
$0.75 × 1.40 = $1.05 per cookie (retail price).
Thus, total sales for 1,000 cookies = $1,050, yielding $304 profit.
Part 3: Compare and Contrast Costing Methods
Job Order Costing:
Applied in case products are custom or in small batches. Every job contains special
material, labor and overhead costs. It offers cost tracking in detail; it is suitable in business
producing limited or specialty goods (Iyenhen and Sabit, 2023). Job order costing is
advantageous to Cookie Haven since it can provide specific cost information at each batch of
4
cookies; therefore, the manager can not only track the efficiency of the resources, but also easily
change the price.
Process Costing:
Applied in large-scale manufacturing facilities and used continuously when production
needs a uniform product (Weygandt et al., 2019). It makes the accounting easier through the
averaging of costs among all units produced. Although process costing is not that detailed when
handling individual jobs, it assists in assessing the efficiency at each production stage.
Comparison and Managerial Usefulness:
In the case of Cookie Haven, which is involved with small-scale specialty production, job
order costing would be handier due to the ability to get a detailed view of materials and labor
elements consumed by specific batches. Nevertheless, when the company grows and starts mass
production and has many departments then the process costing will provide excellent control of
cost per unit and accountability of departments. Neither of the two systems can replace the other:
job order costing is valuable when the order is small and process costing is valuable when the
order should be scaled too numerous in the long-term.
Part 4: Effect of Increase and Decrease of Sales.
The sales vary directly with the quantity of cookies sold. At a sell of over 1,000 cookies,
the total revenue would grow at a higher rate than total cost, as fixed overhead would be evenly
distributed among the more cookies, and profitability will be high. On the contrary, inadequate
sales decreases revenues but a lot of expenses (rent, utilities, salaried wages) stay constant,
lowering net income. As an illustration, by selling 1,500 cookies managing at $1.05 each, the
revenue would be 1,575, however, the expenditures can increase insignificantly to approximately
1,050 and boost the profits. Volume growth, therefore, increases profitability with economies of
5
scale. Nonetheless, changes in demand necessitate close planning of production that would avoid
wastage of inventory and excessive labor.
Conclusions and Recommendations.
This project shows the role of managerial accounting in making decisions that are data-
driven in case of a small business. Using the job order costing is an opportunity that Cookie
Haven Company can take advantage of to trace materials and labor costs per batch and change
prices dynamically. The costing that the company uses will develop process costing because the
production capacity is going to be increased. The relevant markup of 40% is constant so that
prices could remain competitive and the profitability would not be lost.
To continue growing in future, the company should:
1.Use accounting programs to regulate monitoring of expenses.
2.Periodically need to look at the prices of your ingredient suppliers to maintain margins.
3.Find wholesale deals with cafes or hotels to even out the sales volume.
Using cost-accounting principles, Cookie Haven should have the ability to grow as a
local bakery to a regional brand without disorder in its financial discipline and operational
structure.
6
References
Iyenhen, C., & Sabit, M. S. (2023). The Evolution and Development of Management
Accounting Theories and Practices: A Review of Theoretical Frameworks. Central Asian Journal
of Innovations on Tourism Management and Finance, 4(2), 40-54.
https://cajitmf.casjournal.org/index.php/CAJITMF/article/view/422
Weygandt, J. J., Kieso, D. E., Kimmel, P. D., Trenholm, B., Warren, V., & Novak, L.
(2019). Accounting Principles, Volume 2. John Wiley & Sons.
https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Wey
gandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.)
.+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o
[https://cajitmf.casjournal.org/index.php/CAJITMF/article/view/422](https://cajitmf.casjournal.org/index.php/CAJITMF/article/view/422)
[https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Weygandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.).+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o](https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Weygandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.).+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o)
[https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Weygandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.).+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o](https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Weygandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.).+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o)
[https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Weygandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.).+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o](https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Weygandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.).+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o)
**## UnitVIITemplate.xlsx**
## Problem
| | | | | | | | |
| — | — | — | — | — | — | — | — |
| | ABC Manufacuring | | | | | | Instructions: |
| | Direct Labor Budget for the Year Ending Dec 31, 202X | | | | | | 1. Review the data given, fill in the information in yellow cells to determine number of employees needed. |
| | Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Year |
| Direct labor hours per unit | 1 | 1 | 1 | 1 | 1 |
| Labor rate per hour | $20.00 | $20.00 | $20.00 | $20.00 | $20.00 | | 2. Based on the calculations result and information given, address how this information can be useful for managers in terms of scheduling, planning, and control. Include ethical considerations in the budget process. Type your response in the box below. |
| Direct labor cost per unit |
| Units to be produced | 40,000 | 41,000 | 42,000 | 38,000 | 161,000 |
| Total direct labor cost |
| Total hours needed<br> <br>Thanasak Ruankaew: Author:<br>@ 1 labor hour per unit per row #4 | 40,000 | 41,000 | 42,000 | 38,000 | 161,000 |
| Average hours per quarter per employee<br> <br>Thanasak Ruankaew: Author:<br>Each employee can work 480 hours per quarter | 480 | 480 | 480 | 480 |
| Approximate number of employees needed<br> <br>Thanasak Ruankaew: Author:<br>Students may round up the value. |
| | | | | | | | 3. Brieftly address how regulatory and compliance requirements (e.g., minimum wage, benefits, safety, etc.) might impact labor costs and pricing decision. Type response in the below box. |
| Name: |
| Date: |
**## VIIAssignmentCookieBusinessFinalProject.docx**
**Cookie Business Final Project**
Now that your cookie business is well underway, you are going to use the knowledge that you have gained in this course to evaluate the financial information for the company. You will be creating a series of reports and analyzing the results using the templates provided to guide you through the project. In this final project, you will do the following:
1. Apply accounting concepts and standards to the creation of accounting information and reports.
2. Analyze accounting information used to make strategic business decisions.
3. Apply ethical behavior to accounting-related situations.
4. Make business decisions based on analyzing accounting data.
**Length:** Using the
[Unit VII Final Project Template](https://online.columbiasouthern.edu/bbcswebdav/pid-17551107-dt-asiobject-rid-118576101_1/xid-118576101_1), prepare an
**eight-to-twelve-page written report (including spreadsheets).**
**References:** At least three peer-reviewed sources are required, any additional resources used are required to be scholarly/academic in nature. APA Style is required for citations and references.
**Details:** First, start the paper with an abstract and introduction section, per the assignment template provided.
**Part 1:** Based on the data presented in the Unit VII Spreadsheet Template in Excel (CM Breakeven tab):
· Calculate the contribution margin (CM) for each of the three products sold at the cookie business.
· Calculate the weighted average CM.
· Calculate the breakeven point.
Complete your calculations by filling in the highlighted cells; embed a copy of the completed spreadsheet into this report. Discuss the results based on your calculations as far as which type of cookie you think is the most profitable, which has the highest CM, and such.
**Part 2:** Based on the data presented in the Unit VII Spreadsheet Template in Excel (Full Variable tab), complete the calculations listed below.
· Calculate the value of ending inventory under full or absorption costing.
· Calculate the value of ending inventory under variable costing.
Complete your calculations by filling in the highlighted cells; embed a copy of the completed spreadsheet into this report. Discuss the results, and comment on which method you think is more helpful to managers and why.
**Part 3:** Based on the data presented in the Unit VII Spreadsheet Template in Excel (Special Order tab), calculate the net increase or decrease in profit if they take the special order.
Complete your calculations by filling in the highlighted cells; embed a copy of the completed spreadsheet into this report. Discuss the results and comment on if you think the cookie business should take on this special order of cookies for a wedding. Business has been slow the last few months, and the offer is less than the usual selling price for the cookies.
As part of your discussion, include both quantitative (based on the numbers) and qualitative (not based on numbers) factors that would go into the decision to take on the special order, including pricing decisions.
**Part 4:** Based on the data presented in the
[Unit VII Spreadsheet Template](https://online.columbiasouthern.edu/bbcswebdav/pid-17551107-dt-asiobject-rid-182285656_1/xid-182285656_1) in Excel (IRR tab), calculate the internal rate of return (IRR) for the new equipment purchase.
Complete your calculations by filling in the highlighted cells; embed a copy of the completed spreadsheet into this report. Note: the PV Annuity table is provided for you. Discuss if you think the cookie business should accept or reject the purchase of the new equipment and why.
Additional information has come to your attention regarding the equipment purchase. One of the partner's brothers owns the company that sells the equipment and insists the equipment is needed. Discuss any ethical concerns you see with this type of transaction.
**Part 5:** Based on the data presented in the Unit VII Spreadsheet Template in Excel (Cash Budget tab), calculate the cash receipts for the first quarter of this year.
Complete your calculations by filling in the highlighted cells; embed a copy of the completed spreadsheet into this report. Discuss your observations about the way cash is collected if the company needs $150,000 per month for expenses.
**Part 6:** Based on the data presented in the Unit VII Spreadsheet Template in Excel (Variances tab), complete the following calculations.
· Calculate the material variances.
· Calculate the labor variances.
Complete your calculations by filling in the highlighted cells; embed a copy of the completed spreadsheet into this report. Discuss your observations about the variances and ways to plan to improve any of the variances.
End this paper with the key observations and present any future recommendations.
**## UnitIIIcookies.pdf**
0
Robert Benders
Unit III Assignment
Professor Steve Horan
Columbia Southern University
ACC-5301
10/20/2025
1
The Cookie Haven Company
Introduction
Entrepreneurship business ventures can be started with a rather simple idea, which is a
natural combination of passion and market opportunity. This is a project based on the launching
of a small-scale cookie business under the context of managerial accounting. This aims to know
how cost-accounting systems, namely job order and process costing, can be used to support
strategic decisions made by the business. This paper illustrates how managers use accounting
data to assess profitability, efficiency and sustainability of a single product cookie company by
generating and analyzing production, costing and pricing data of this company.
Part 1: Cookie Business Startup.
Business Name and Location:
The corporation will be called Cookie Haven Company and it will be situated within the
city of Savannah, Georgia, which is characterized by tourism and a high level of hospitality in
the south that will point to the steady flow of visitors.
Mission Statement:
To make new handmade cookies with quality ingredients and care of an artisan to provide
our customers with comfort and pleasure in every bite.
Type of Cookie:
The cookies that Cookie Haven will focus on are Sea Salt Chocolate Chip Cookies that
will consist of locally sourced chocolate and butter and light sprinkling of sea salt. The company
has one specialty cookie to sell which will enable it to stay consistent in quality and accurately
manage its cost preservation.
2
Part 2: Sales Information and Costing.
Job Order Costing
The job order system is characterized by the treatment of each batch (1,000 cookies) as a
special production job. The accumulated costs are direct materials, combined direct labor and
manufacturing overhead (30 percent applied manufacturing overhead).
Direct Materials (per 1,000 cookies) Estimated Cost (USD)
Flour – 15 lbs @ $0.80/lb $12.00
Sugar – 10 lbs @ $1.00/lb $10.00
Butter – 15 lbs @ $4.00/lb $60.00
Chocolate Chips – 10 lbs @ $3.50/lb $35.00
Sea Salt & Vanilla – combined $5.00
Total Direct Materials $122.00
Direct Labor:
Two bakers each earn $15/hour. For two days (16 total labor hours), the labor cost equals $480
(16 × $30).
Manufacturing Overhead:
At 30% of direct labor → $144 ($480 × 0.30).
Total Job Cost:
$122 (materials) + $480 (labor) + $144 (overhead) = $746.
Cost per cookie: $746 ÷ 1,000 = $0.75.
3
Process Costing – Mixing Department
The Mixing Department handles the first stage of production. For 1,000 cookies:
• Direct Materials: $122 (added at the start).
• Direct Labor: Two employees × 4 hrs × $15/hr = $120.
• Overhead (30% of labor): $36.
• Conversion Costs (labor + overhead): $156.
• Cookies are 100% complete for materials, 40% complete for conversion.
→ Equivalent units for conversion = 1,000 × 0.40 = 400.
→ Cost per equivalent unit (conversion) = $156 ÷ 400 = $0.39/unit.
→ Total cost transferred from Mixing = $122 + (400 × $0.39) = $278.
The process costing system thus tracks costs by stage rather than by batch.
Sales Price
To achieve a 40% profit margin:
$0.75 × 1.40 = $1.05 per cookie (retail price).
Thus, total sales for 1,000 cookies = $1,050, yielding $304 profit.
Part 3: Compare and Contrast Costing Methods
Job Order Costing:
Applied in case products are custom or in small batches. Every job contains special
material, labor and overhead costs. It offers cost tracking in detail; it is suitable in business
producing limited or specialty goods (Iyenhen and Sabit, 2023). Job order costing is
advantageous to Cookie Haven since it can provide specific cost information at each batch of
4
cookies; therefore, the manager can not only track the efficiency of the resources, but also easily
change the price.
Process Costing:
Applied in large-scale manufacturing facilities and used continuously when production
needs a uniform product (Weygandt et al., 2019). It makes the accounting easier through the
averaging of costs among all units produced. Although process costing is not that detailed when
handling individual jobs, it assists in assessing the efficiency at each production stage.
Comparison and Managerial Usefulness:
In the case of Cookie Haven, which is involved with small-scale specialty production, job
order costing would be handier due to the ability to get a detailed view of materials and labor
elements consumed by specific batches. Nevertheless, when the company grows and starts mass
production and has many departments then the process costing will provide excellent control of
cost per unit and accountability of departments. Neither of the two systems can replace the other:
job order costing is valuable when the order is small and process costing is valuable when the
order should be scaled too numerous in the long-term.
Part 4: Effect of Increase and Decrease of Sales.
The sales vary directly with the quantity of cookies sold. At a sell of over 1,000 cookies,
the total revenue would grow at a higher rate than total cost, as fixed overhead would be evenly
distributed among the more cookies, and profitability will be high. On the contrary, inadequate
sales decreases revenues but a lot of expenses (rent, utilities, salaried wages) stay constant,
lowering net income. As an illustration, by selling 1,500 cookies managing at $1.05 each, the
revenue would be 1,575, however, the expenditures can increase insignificantly to approximately
1,050 and boost the profits. Volume growth, therefore, increases profitability with economies of
5
scale. Nonetheless, changes in demand necessitate close planning of production that would avoid
wastage of inventory and excessive labor.
Conclusions and Recommendations.
This project shows the role of managerial accounting in making decisions that are data-
driven in case of a small business. Using the job order costing is an opportunity that Cookie
Haven Company can take advantage of to trace materials and labor costs per batch and change
prices dynamically. The costing that the company uses will develop process costing because the
production capacity is going to be increased. The relevant markup of 40% is constant so that
prices could remain competitive and the profitability would not be lost.
To continue growing in future, the company should:
1.Use accounting programs to regulate monitoring of expenses.
2.Periodically need to look at the prices of your ingredient suppliers to maintain margins.
3.Find wholesale deals with cafes or hotels to even out the sales volume.
Using cost-accounting principles, Cookie Haven should have the ability to grow as a
local bakery to a regional brand without disorder in its financial discipline and operational
structure.
6
References
Iyenhen, C., & Sabit, M. S. (2023). The Evolution and Development of Management
Accounting Theories and Practices: A Review of Theoretical Frameworks. Central Asian Journal
of Innovations on Tourism Management and Finance, 4(2), 40-54.
https://cajitmf.casjournal.org/index.php/CAJITMF/article/view/422
Weygandt, J. J., Kieso, D. E., Kimmel, P. D., Trenholm, B., Warren, V., & Novak, L.
(2019). Accounting Principles, Volume 2. John Wiley & Sons.
https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Wey
gandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.)
.+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o
[https://cajitmf.casjournal.org/index.php/CAJITMF/article/view/422](https://cajitmf.casjournal.org/index.php/CAJITMF/article/view/422)
[https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Weygandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.).+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o](https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Weygandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.).+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o)
[https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Weygandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.).+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o](https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Weygandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.).+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o)
[https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Weygandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.).+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o](https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Weygandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.).+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o)
**## UnitVIITemplate.xlsx**
## Problem
| | | | | | | | |
| — | — | — | — | — | — | — | — |
| | ABC Manufacuring | | | | | | Instructions: |
| | Direct Labor Budget for the Year Ending Dec 31, 202X | | | | | | 1. Review the data given, fill in the information in yellow cells to determine number of employees needed. |
| | Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Year |
| Direct labor hours per unit | 1 | 1 | 1 | 1 | 1 |
| Labor rate per hour | $20.00 | $20.00 | $20.00 | $20.00 | $20.00 | | 2. Based on the calculations result and information given, address how this information can be useful for managers in terms of scheduling, planning, and control. Include ethical considerations in the budget process. Type your response in the box below. |
| Direct labor cost per unit |
| Units to be produced | 40,000 | 41,000 | 42,000 | 38,000 | 161,000 |
| Total direct labor cost |
| Total hours needed<br> <br>Thanasak Ruankaew: Author:<br>@ 1 labor hour per unit per row #4 | 40,000 | 41,000 | 42,000 | 38,000 | 161,000 |
| Average hours per quarter per employee<br> <br>Thanasak Ruankaew: Author:<br>Each employee can work 480 hours per quarter | 480 | 480 | 480 | 480 |
| Approximate number of employees needed<br> <br>Thanasak Ruankaew: Author:<br>Students may round up the value. |
| | | | | | | | 3. Brieftly address how regulatory and compliance requirements (e.g., minimum wage, benefits, safety, etc.) might impact labor costs and pricing decision. Type response in the below box. |
| Name: |
| Date: |
**## VIIAssignmentCookieBusinessFinalProject.docx**
**Cookie Business Final Project**
Now that your cookie business is well underway, you are going to use the knowledge that you have gained in this course to evaluate the financial information for the company. You will be creating a series of reports and analyzing the results using the templates provided to guide you through the project. In this final project, you will do the following:
1. Apply accounting concepts and standards to the creation of accounting information and reports.
2. Analyze accounting information used to make strategic business decisions.
3. Apply ethical behavior to accounting-related situations.
4. Make business decisions based on analyzing accounting data.
**Length:** Using the
[Unit VII Final Project Template](https://online.columbiasouthern.edu/bbcswebdav/pid-17551107-dt-asiobject-rid-118576101_1/xid-118576101_1), prepare an
**eight-to-twelve-page written report (including spreadsheets).**
**References:** At least three peer-reviewed sources are required, any additional resources used are required to be scholarly/academic in nature. APA Style is required for citations and references.
**Details:** First, start the paper with an abstract and introduction section, per the assignment template provided.
**Part 1:** Based on the data presented in the Unit VII Spreadsheet Template in Excel (CM Breakeven tab):
· Calculate the contribution margin (CM) for each of the three products sold at the cookie business.
· Calculate the weighted average CM.
· Calculate the breakeven point.
Complete your calculations by filling in the highlighted cells; embed a copy of the completed spreadsheet into this report. Discuss the results based on your calculations as far as which type of cookie you think is the most profitable, which has the highest CM, and such.
**Part 2:** Based on the data presented in the Unit VII Spreadsheet Template in Excel (Full Variable tab), complete the calculations listed below.
· Calculate the value of ending inventory under full or absorption costing.
· Calculate the value of ending inventory under variable costing.
Complete your calculations by filling in the highlighted cells; embed a copy of the completed spreadsheet into this report. Discuss the results, and comment on which method you think is more helpful to managers and why.
**Part 3:** Based on the data presented in the Unit VII Spreadsheet Template in Excel (Special Order tab), calculate the net increase or decrease in profit if they take the special order.
Complete your calculations by filling in the highlighted cells; embed a copy of the completed spreadsheet into this report. Discuss the results and comment on if you think the cookie business should take on this special order of cookies for a wedding. Business has been slow the last few months, and the offer is less than the usual selling price for the cookies.
As part of your discussion, include both quantitative (based on the numbers) and qualitative (not based on numbers) factors that would go into the decision to take on the special order, including pricing decisions.
**Part 4:** Based on the data presented in the
[Unit VII Spreadsheet Template](https://online.columbiasouthern.edu/bbcswebdav/pid-17551107-dt-asiobject-rid-182285656_1/xid-182285656_1) in Excel (IRR tab), calculate the internal rate of return (IRR) for the new equipment purchase.
Complete your calculations by filling in the highlighted cells; embed a copy of the completed spreadsheet into this report. Note: the PV Annuity table is provided for you. Discuss if you think the cookie business should accept or reject the purchase of the new equipment and why.
Additional information has come to your attention regarding the equipment purchase. One of the partner's brothers owns the company that sells the equipment and insists the equipment is needed. Discuss any ethical concerns you see with this type of transaction.
**Part 5:** Based on the data presented in the Unit VII Spreadsheet Template in Excel (Cash Budget tab), calculate the cash receipts for the first quarter of this year.
Complete your calculations by filling in the highlighted cells; embed a copy of the completed spreadsheet into this report. Discuss your observations about the way cash is collected if the company needs $150,000 per month for expenses.
**Part 6:** Based on the data presented in the Unit VII Spreadsheet Template in Excel (Variances tab), complete the following calculations.
· Calculate the material variances.
· Calculate the labor variances.
Complete your calculations by filling in the highlighted cells; embed a copy of the completed spreadsheet into this report. Discuss your observations about the variances and ways to plan to improve any of the variances.
End this paper with the key observations and present any future recommendations.
**## UnitIIIcookies.pdf**
0
Robert Benders
Unit III Assignment
Professor Steve Horan
Columbia Southern University
ACC-5301
10/20/2025
1
The Cookie Haven Company
Introduction
Entrepreneurship business ventures can be started with a rather simple idea, which is a
natural combination of passion and market opportunity. This is a project based on the launching
of a small-scale cookie business under the context of managerial accounting. This aims to know
how cost-accounting systems, namely job order and process costing, can be used to support
strategic decisions made by the business. This paper illustrates how managers use accounting
data to assess profitability, efficiency and sustainability of a single product cookie company by
generating and analyzing production, costing and pricing data of this company.
Part 1: Cookie Business Startup.
Business Name and Location:
The corporation will be called Cookie Haven Company and it will be situated within the
city of Savannah, Georgia, which is characterized by tourism and a high level of hospitality in
the south that will point to the steady flow of visitors.
Mission Statement:
To make new handmade cookies with quality ingredients and care of an artisan to provide
our customers with comfort and pleasure in every bite.
Type of Cookie:
The cookies that Cookie Haven will focus on are Sea Salt Chocolate Chip Cookies that
will consist of locally sourced chocolate and butter and light sprinkling of sea salt. The company
has one specialty cookie to sell which will enable it to stay consistent in quality and accurately
manage its cost preservation.
2
Part 2: Sales Information and Costing.
Job Order Costing
The job order system is characterized by the treatment of each batch (1,000 cookies) as a
special production job. The accumulated costs are direct materials, combined direct labor and
manufacturing overhead (30 percent applied manufacturing overhead).
Direct Materials (per 1,000 cookies) Estimated Cost (USD)
Flour – 15 lbs @ $0.80/lb $12.00
Sugar – 10 lbs @ $1.00/lb $10.00
Butter – 15 lbs @ $4.00/lb $60.00
Chocolate Chips – 10 lbs @ $3.50/lb $35.00
Sea Salt & Vanilla – combined $5.00
Total Direct Materials $122.00
Direct Labor:
Two bakers each earn $15/hour. For two days (16 total labor hours), the labor cost equals $480
(16 × $30).
Manufacturing Overhead:
At 30% of direct labor → $144 ($480 × 0.30).
Total Job Cost:
$122 (materials) + $480 (labor) + $144 (overhead) = $746.
Cost per cookie: $746 ÷ 1,000 = $0.75.
3
Process Costing – Mixing Department
The Mixing Department handles the first stage of production. For 1,000 cookies:
• Direct Materials: $122 (added at the start).
• Direct Labor: Two employees × 4 hrs × $15/hr = $120.
• Overhead (30% of labor): $36.
• Conversion Costs (labor + overhead): $156.
• Cookies are 100% complete for materials, 40% complete for conversion.
→ Equivalent units for conversion = 1,000 × 0.40 = 400.
→ Cost per equivalent unit (conversion) = $156 ÷ 400 = $0.39/unit.
→ Total cost transferred from Mixing = $122 + (400 × $0.39) = $278.
The process costing system thus tracks costs by stage rather than by batch.
Sales Price
To achieve a 40% profit margin:
$0.75 × 1.40 = $1.05 per cookie (retail price).
Thus, total sales for 1,000 cookies = $1,050, yielding $304 profit.
Part 3: Compare and Contrast Costing Methods
Job Order Costing:
Applied in case products are custom or in small batches. Every job contains special
material, labor and overhead costs. It offers cost tracking in detail; it is suitable in business
producing limited or specialty goods (Iyenhen and Sabit, 2023). Job order costing is
advantageous to Cookie Haven since it can provide specific cost information at each batch of
4
cookies; therefore, the manager can not only track the efficiency of the resources, but also easily
change the price.
Process Costing:
Applied in large-scale manufacturing facilities and used continuously when production
needs a uniform product (Weygandt et al., 2019). It makes the accounting easier through the
averaging of costs among all units produced. Although process costing is not that detailed when
handling individual jobs, it assists in assessing the efficiency at each production stage.
Comparison and Managerial Usefulness:
In the case of Cookie Haven, which is involved with small-scale specialty production, job
order costing would be handier due to the ability to get a detailed view of materials and labor
elements consumed by specific batches. Nevertheless, when the company grows and starts mass
production and has many departments then the process costing will provide excellent control of
cost per unit and accountability of departments. Neither of the two systems can replace the other:
job order costing is valuable when the order is small and process costing is valuable when the
order should be scaled too numerous in the long-term.
Part 4: Effect of Increase and Decrease of Sales.
The sales vary directly with the quantity of cookies sold. At a sell of over 1,000 cookies,
the total revenue would grow at a higher rate than total cost, as fixed overhead would be evenly
distributed among the more cookies, and profitability will be high. On the contrary, inadequate
sales decreases revenues but a lot of expenses (rent, utilities, salaried wages) stay constant,
lowering net income. As an illustration, by selling 1,500 cookies managing at $1.05 each, the
revenue would be 1,575, however, the expenditures can increase insignificantly to approximately
1,050 and boost the profits. Volume growth, therefore, increases profitability with economies of
5
scale. Nonetheless, changes in demand necessitate close planning of production that would avoid
wastage of inventory and excessive labor.
Conclusions and Recommendations.
This project shows the role of managerial accounting in making decisions that are data-
driven in case of a small business. Using the job order costing is an opportunity that Cookie
Haven Company can take advantage of to trace materials and labor costs per batch and change
prices dynamically. The costing that the company uses will develop process costing because the
production capacity is going to be increased. The relevant markup of 40% is constant so that
prices could remain competitive and the profitability would not be lost.
To continue growing in future, the company should:
1.Use accounting programs to regulate monitoring of expenses.
2.Periodically need to look at the prices of your ingredient suppliers to maintain margins.
3.Find wholesale deals with cafes or hotels to even out the sales volume.
Using cost-accounting principles, Cookie Haven should have the ability to grow as a
local bakery to a regional brand without disorder in its financial discipline and operational
structure.
6
References
Iyenhen, C., & Sabit, M. S. (2023). The Evolution and Development of Management
Accounting Theories and Practices: A Review of Theoretical Frameworks. Central Asian Journal
of Innovations on Tourism Management and Finance, 4(2), 40-54.
https://cajitmf.casjournal.org/index.php/CAJITMF/article/view/422
Weygandt, J. J., Kieso, D. E., Kimmel, P. D., Trenholm, B., Warren, V., & Novak, L.
(2019). Accounting Principles, Volume 2. John Wiley & Sons.
https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Wey
gandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.)
.+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o
[https://cajitmf.casjournal.org/index.php/CAJITMF/article/view/422](https://cajitmf.casjournal.org/index.php/CAJITMF/article/view/422)
[https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Weygandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.).+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o](https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Weygandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.).+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o)
[https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Weygandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.).+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o](https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Weygandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.).+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o)
[https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Weygandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.).+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o](https://books.google.com/books?hl=en&lr=&id=p6yXDwAAQBAJ&oi=fnd&pg=PA1&dq=Weygandt,+J.+J.,+Kimmel,+P.+D.,+%26+Kieso,+D.+E.+(2022).+Accounting+principles+(15th+ed.).+Wiley.&ots=NugQB7BEac&sig=NtZoSeQswokT3yokzlIJgoGqD7o)
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