Aunt Connie's Cookies


Aunt Connie’s Cookie Simulation
Frances Lewis
University of Phoenix
April 19, 2010

Aunt Connie’s Cookie Simulation
Aunt Connie’s Cookies was founded in 1986. It quickly became a favorite of many, particularly the lemon crème and real mint cookies.   This family owned company was previously run by Maria Villanueva.   Like many other organizations, Aunt Connie’s is faced with critical decisions that can impact the success of the business going forward.   Maria This paper discusses how an accounting based system will be useful in determining product costs.
Cost accounting systems exist for business and organizations to analyze financial data and make informed decisions and execute plans to ensure continued success. Numerous cost accounting methods exist for organizations and businesses to use when making such decisions.   According to Horngren, “companies adopt cost accounting systems that are consistent with their management philosophies and their production and operating technologies.   Changes in philosophies or technologies often prompt corresponding changes in cost accounting systems.” A cost accounting system contains five parts: input measurements bases, inventory valuation methods, cost accumulation methods, cost flow assumptions, and recording interval capacity.
Aunt Connie’s Cookies has reached a pivotal point and a decision must be made regarding accepting a bulk order of cookies, buying out a competitor and the strains of meeting demands and continuing to remain profitable.   When faced with such decisions, managers and business owners must use the appropriate systems to make the best decision.
The company needs to decide whether it’s a good decision to complete the bulk order.   Contribution margin analysis is useful to determining the best decision for the company regarding the bulk order.   Contribution margin is a cost accounting concept that allows a company to determine the profitability of...