Project Management: CraveMunch Cookies Business Costing Method

Abstract

CraveMunch Cookies is a cookie company based in Miami, Florida, dedicated to

discovery of product costing and its strategic implications. This report encompasses the

company’s development history from its creation and business processes to costing and sales

data analysis and an overview of different costing methods. Coupled with the deduction analysis,

the attempt to discern the strategic implications of sales volume alterations in the specialty

cookie industry is apparent. The focus of the report is on a critical investigation with the goal of

providing the most comprehensive presentation of the underlying knowledge necessary for

stakeholders to operate efficiently in the complex context of managing a diverse labor cookie

business in a modern competitive environment. As CraveMunch Cookies endeavors to establish

itself as a leader in the industry, this exploration serves as a roadmap for achieving sustainable

growth and success in the dynamic world of specialty cookies.

Introduction

CraveMunch Cookies represents creativity and innovation in the specialty cookie

landscape. Based in Miami, Florida, CraveMunch Cookies is widely recognized for its

unwavering commitment to excellence, sustainability and community involvement. As

companies prepare for the upcoming summer festival, the importance of efficient project

management and cost optimization is clearer than ever. This report initiates a comprehensive

study of the CraveMunch Cookies strategic business, providing insights into its creation, cost

methodology, and marketing strategies.

Founded on the principles of quality, CraveMunch Cookies has become synonymous

with delectable treats that tantalize the taste buds and evoke a sense of joy and satisfaction. With
a diverse range of flavors and a commitment to using premium ingredients sourced locally

wherever possible, CraveMunch Cookies has carved out a niche for itself in the competitive

cookie market.

As the company looks to the upcoming summer festival, it recognizes the importance of

good project management to ensure success and increase the chances of success. By optimizing

cost and improving sales processes, CraveMunch Cookies strives to position itself as a leader in

the specialty cookie industry, delighting customers and fostering long-term community

relationships.

CraveMunch Cookies will be the center of our focus throughout this report, and it is with

great pleasure that we recount their beginnings in Miami, their unique approaches to product

development, and strategic drives towards profitable sustainability. Through our study on project

management and cost optimization specifics in the specialty cookie industry, stakeholders, as

well as cookie aficionados, can expect to gain invaluable perspectives. It is certain that this

report will stand as evidence of the greatness CraveMunch Cookies possess in their relentless

pursuit of perfection while not being deterred by changing trends in specialty cookies.

Part 1: Establishment of CraveMunch Cookies Business

At the heart of the CraveMunch Cookies journey is the meticulous process of creating our

identity and mission. Strategically located on Brickell Avenue in Miami, the company is

positioned to mesmerize customers with exquisite products. CraveMunch Cookies aims to be a

beacon of culinary excellence, with a mission rooted in quality, creativity and an unwavering

commitment to customer satisfaction.

As Belgian type chocolate cookie specialist, CraveMunch Cookies wants to send its

customers on a fun journey with everything delicious. The delicious aroma of freshly baked
cookies and the delightful allure of premium ingredients promise an experience more than

anything else. By focusing on one type of cookie, CraveMunch Cookies is able to use its

resources and expertise to optimize its capabilities, ensuring that each team exceeds their

expectations (Reidhead, 2020).

CraveMunch Cookies is founded on an artisanal culture of cookie-making, facilitating a

seamless process to promote the household name’s identity of quality and luxury. The company

is strategically based along Brickell Avenue, thereby attracting both the locals and the tourists to

savor the expansive Miami cityscape.

Although CraveMunch Cookies is at the inception of its journey, it clings to its pledge

and drive toward distinction and originality. The organization’s primary product is Belgian

chocolate chunk cookies. It intends to create an everlasting bond between itself and customers,

evoking fond memories and creating new ones with each tasty bite. By focusing on their mission

statement, as well as staying true to their values, CraveMunch Cookies is set to make a

remarkable footprint within the industry of specialty cookies.

The CraveMunch Cookies company has a well-developed procedure for its cost and sales

analysis, which includes the use of job order costing and process costing principles to thoroughly

study all sides of its activities. In terms of job order costing, CraveMunch Cookies can determine

the costs for manufacturing 1000 different specialty cookies, which will cover not only the

amount spent on ingredients but also expenses on labor and manufacturing overheads, among

others, so that all possible ways that may contribute to profitability are considered.

Job Order Cost Sheet for CraveMunch Cookies

 CraveMunch Cookies Business
Job Order Cost Sheet
Job number SCB#433
Manufacturing
Total Cost
Diect Materials Direct Labour overhead
per
ingredien
Ingredients t Total Cost Total Cost
Ingredients $400 Labor (20 hours) $300 22%
Manufacturing Overhead $200
Cost Summary
Direct Materials $400
Manufacturing Overhead $200
Labor (20 hours) $300
$900
Units $1,000
Cost per unit $0.90

Process costing reveals more general patterns in terms of the cost of the entire operation

of CraveMunch Cookies. Indeed, as costs are assessed by the department, and the epithets

Mixing, Add-ins, Packaging help the company grasp expenses related to the production, pricing,

and other staff allocation issues.

Process Cost Sheet for CraveMunch Cookies

CraveMunch Cookies Business

Job Order Cost Sheet
Job number SCB#433
Manufacturing
Total Cost
Diect Materials Direct Labour overhead
per
ingredien
Ingredients t Total Cost Total Cost
Ingredients $400 Labor (20 hours) $300 22%
Manufacturing Overhead $200
Cost Summary
Direct Materials $400
Manufacturing Overhead $200
Labor (20 hours) $300
$900
Units $1,000
Cost per unit $0.90
CraveMunch Cookies weighs and applies the benefits of job order costing and process costing

methods against one another. Precisely, job order costing is focused on the individual batches

and the costs associated with each, and while process costing tracks the larger orders, the costs

associated with the production as a whole (Garrison et al., 2020).

Thus, CraveMunch Cookies is able to maximize effective decision-making and resource

allocation to obtain the greatest profitability of its unique business in the competitive cookie

market.

Profit Table
Description Amount
Cost per serving $0.90
Profit margin (25%) $0.225
Selling price $1.125

The profit table expresses the CraveMunch Cookies pricing strategy, which resulted in

the low cost per serving of $0.90 and a sound profit 25% per serving, resulting in $0.225.

Therefore, the company can sell its specialty cookies at $1.125 per serving, not facing loss. It

positively reflects the combination of enjoyable pricing and the cost base that represents the

value to the customer and financial viability to the company in the specialty cookie market.

Effect of Decrease or Increase in Sales

Sales volatility highlights the challenges and opportunities for CraveMunch Cookies

(Sharif et al., 2023). When there is an increase in sales, the company experiences an increase in

revenue and profit. In order to better manage and respond to high demand due to increased sales,

CraveMunch Cookies must implement promotional strategies. Such an approach would take the
form of increasing production, providing more resources to the marketing department, and

analyzing levels for potential opportunities.

On the contrary, if there is a decline in the sales, CraveMunch Cookies has to act urgently

to spur demand while protecting its profitability from decrease. This can involve the running of

marketing campaigns, launching promotional offers or diversification of the products to reach a

wider audience (CFI, 2022). Besides, the firm can consider partnerships and new distribution

channels to access other markets and reduce the impact of the declining sales.

By constantly reviewing the sales trends and the market, CraveMunch Cookies stays

nimble and flexible and is always prepared to change its approach and operations to

accommodate new consumer tastes and market conditions. In this manner, CraveMunch Cookies

can respond adeptly to sales fluctuations, stay competitive, and keep growing and earning a

profit in the fast-paced cookie market.

Conclusion

CraveMunch Cookies' entry into the specialty cookie market is a testament to the fact that

good project management, strategic pricing, and aggressive marketing are the keys to success.

Believing in an unwavering commitment to excellence, innovation and customer satisfaction,

CraveMunch Cookies is able to grow from strength to strength in this dynamic world of specialty

products. And while the company continues to spread joy among the people who use its flavors,

it never wavers in its commitment to excellence and constant innovation. By carefully analyzing

the behavior of the market and closely studying internal factors such as resources, talent

capabilities and strengths that are supplemented by a high degree of heuristic in marking

dynamics, I market CraveMunch Cookies is always the dominant player in market for cookies

based on people preferences. The predisposition to creative thinking and adjust has created an
environment that CraveMunch Cook facilitates a way to meet all the trial and opportunities that

emerge in a competitive market conditions.

Looking ahead, CraveMunch Cookies remains true to its core values and principles,

demonstrating a commitment to quality and customer satisfaction in every cookie produced.

Focused on continuous improvement and customer centricity, the company is poised to achieve

sustainable growth and long-term impact in the specialty food landscape. In fact, CraveMunch

Cookies' journey is a testament to effective project management, strategic decision-making, and

an unwavering commitment to excellence. As we continue to delight our customers and expand

our reach, CraveMunch Cookies strives for culinary innovation and customer satisfaction,

embodying the meaning of joy and passion in every bite.

 References

CFI. (2022, November 29). Product Diversification. Corporate Finance Institute.

https://corporatefinanceinstitute.com/resources/management/product-diversification/

Garrison, R. H., Noreen, E. W., & Brewer, P. C. (2020). Managerial accounting. McGraw-Hill

Education.

Reidhead, C. (2020). A review of businesses that focus on markets vs. businesses that focus on products

in association with market orientation. Technium Social Sciences Journal, 11, 203–209.

https://doi.org/10.47577/tssj.v11i1.1610

Sharif, S. V., Parker, D. C., Waddell, P., & Tsiakopoulos, T. (2023). Understanding the Effects of

Market Volatility on Profitability Perceptions of Housing Market Developers. Journal of Risk

and Financial Management, 16(10), 446–446. https://doi.org/10.3390/jrfm16100446