May 15th, 2015
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Running head: AUNT CONNIES COOKIESAunt Connies CookiesYOUR NAME(S)ACC/561DATEPROFESSORS NAMEAunt Connies CookiesHow Aunt Connies Cookies could use cost accounting systems to determine their product costsAunt Connies Cookies could utilize traditional cost accounting by using a mixture of materials and labor costs and allocating their expenses to each product. It would assume that the more cookies are created, the more overhead there will be. This would be a simple approach for Aunt Connies Cookies, but it may not necessary provide them with sufficient data to properly determine their product costs. Aunt Connies Cookies could use activity-based costing, in order to examine its costs by type of activity instead of end product. Unlike the traditional method, it would let the company analyze the overall systems with more detail in order for them to see if there are cost inefficiencies. It would be particularly helpful for Aunt Connies Cookies if its indirect costs are greater than its direct costs. If Aunt Connies Cookies were to utilize activity-based accounting, it would first need to identify its activities, and then designate a cost to

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