Aunt Connie Cookie was established in 1986 . Connie began making cookies for a fundraiser, many people being impressed by her acumen and pastry skills she was offered a business proposition by many. The brand is known for it tasty lemon and real mint cookie. Maria Villanueva the grand niece of Connie is the Chief executive officers of the business. I been appointed the chief operation officers.
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My recommendation for the cost would be for the business to Adopt a cost management system . A cost management system (CMS) is a collection of tools and techniques that identify how management??™s decision affects costs that identify how management??™s decisions affect costs. Developing a Cms system would enable the business to figure out if reducing cost, changing business hours, add new product or new material. Utilizing the measurement each cost of business you can make needed changes.
Product costs is identified with goods produced or purchased for resale These inventorial costs become expenses in the form of cost of goods sold only when the company sells the inventory. Developing a strategies that minimize cost in getting the ingredients to make the cookies. The company need to developing and maintain supplier relationships. Transportation costs, including carrier payment terms, special charges in the realms of packaging , handling and loading and unloading. Costs to receive, process, or make ready, including unloading, counting, inspection, and inventory costs, as well as expenses associated with disposal of packaging and other product.
We need to make a big decision to pick location of business and how would we differ are company from competitor. The advertising would need to reach the right demographics.
Fixed cost changes in the cost driver do not immediately affect. The building rent, insurance on the place A business can start reducing fixed costs, by first examining amount the benefit and the quality of return. Examine every contracted fixed payment to service providers: employee, building rent, advertising, and equipment. the first thing to do is thoroughly examine the amount, the benefit and the quality of return. Determine whether there are competitor prices equal to or less than the current vendors who can provide superior service. Most importantly, determine whether the results of the contract to date have led to better productivity. Cooking the cookies can be convenient, but determine whether employees on the clock can do the same service during periods of inactivity with out manger.
Retain the unit prices and increasing market expedentures can results in good profit. Reducing unit prices could have boosted sales and resulted in even better profits. Through contribution unit per pack unit for cookies from at large order .IF we are seeking to maximize profits it is better
In contrast, period costs
become expenses during the current period without becoming part of inventory