Aunt Connie's Cookies

Aunt Connie's Cookies - Aunt Connies Cookies 1 Aunt Connies...

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Aunt Connie’s Cookies 1 Aunt Connie’s Cookies Aunt Connie’s Cookies Simulation Jolynn Weeks University of Phoenix ACC 561 February 22, 2011
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Aunt Connie’s Cookies 2 There are two basic types of costs incurred by businesses, fixed and variable. Fixed cost does not change in total as the volume of activity changes (Marshall, McManus and Viele, 2004, pg. 417). Variable costs fluctuate in direct proportion to changes in output. Variable costs change in total as the volume of activity changes, but will remain constant when expressed on a per-unit basis (Marshall et al., 2004, 2004, pg. 417). Labor and material costs are. .. Cost accounting is extremely important in the business world in order to determine the cost of products and services. By using cost accounting techniques, accurate and timely cost information is provided to assist managers make decisions.Product costs are the costs of the ingredients either produced or purchased for resale. Product costs first become part of the on hand inventory sometimes. In the Aunt Connie’s Cookies simulation, the inventory is made up of items such as sugar, syrup, flower, mint, lemons, and crème. The costs Aunt Connie’s cookies will sacrifice are its resources but they will serve a particular purpose. The cost of labor at Aunt Connie’s cookies willwill force her to gives up cash to the employees in exchange for their labor. The cost of labor is measured by currency either in pesos or in dollars which, are paid out to obtain the workers skilled labor. After Aunt Connie calculates her labor costs, she then needs to calculate what it costs her to produce each particular cookie. A cost accounting system requires five parts.
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Aunt Connie's Cookies - Aunt Connies Cookies 1 Aunt Connies...

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