COOKIE SIMULATION

Aunt Connie's Cookie Simulation



Aunt Connie's Cookie Simulation

Introduction

Aunt Connie's Cookies was established in 1986. Aunt Connie loved to make cookies and individuals enjoyed consuming them so much that one day she was asked to make cookies for an annual fundraiser. The proprietor of the fundraiser at the time was keen to purchase a batch of 500 cookies for $50 dollars. Instead, Aunt Connie proposed them a much better deal of 600 cookies at the cost of $55 dollars.

In the simulation of Aunt Connie's Cookies it wrappings how alterations in trading cost, cost, and capability sway the groundwork line. The cost accounting scheme is the most basic constituent of a cost management system. It carries all other cost administration scheme devices and techniques” (Horngren, Sundem, Stratton, 2008).

Discussion

There were some judgments that leveraged the general profitability of Aunt Connie's Cookies. The first theme was to look at the price increases for the lemon crème and the authentic mint cookies. This increase in price reflects a down turn in capability, which is a foremost concern for the company. Past tendencies proved that capability amplified as unit sale prices decreased. In concluding to decline price in alignment to complete higher capability would conclusion in higher profitability and a thriving longevity for Aunt Connie's Cookies. If the contribution margin were bigger than the fixed allegations the enterprise would maintain profitability.

A bulk alignment demand more over reaches in for the authentic mint cookies. Unfortunately, this is not an optimal conclusion for the Aunt Connie's Cookie Company as the lemon elite cookie has a higher contribution margin than the authentic Mint.

A new cost accounting scheme will assist to work out unquestionable and timely information to assist administration in their decision making. Without unquestionable and consistent information, Aunt Connie's Cookies will not amply forecast future cost ...