Forming the Company
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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. Will you focus on quality, volume, or satisfying a niche? Will you sell using a traditional brick & mortar storefront or through eCommerce? Who is your target market? What are your expansion plans? What will be your main products? Where will you operate?
- Write a mission statement for your company that reflects the decisions you made in the previous step.
- Based on your company’s mission, describe the long-range goals, strategies, and objectives that your company will pursue. Will you increase sales a certain percent each year, increase the number of stores, co-brand with another product, etc.
- Decide upon a company name.
- Determine cookie specifications: size, color, key ingredients, appearance, quantity and packaging.
- Develop a recipe that fits with your mission, goals, and specifications.
- Create a job cost card for your cookie recipe and calculate 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.
- Will you use a job order or process accounting system? Why?
- Include a diagram showing the flow of costs through your chosen system.
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