In the “Cookie Company” case in the last chapter, you prepared a mission statement for your company. You also set its strategic, tactical, and operating objectives;

decided on its name; and identified the tools you might use to run it. Here, you will form a company team and assign roles to team members, set cookie specifications, decide on a cookie recipe, and answer some questions about product costs.

1. Join with 4 or 5 other students in the class to form a company team. (Your instructor may assign groups or allow students to organize their own teams.)

• Determine team members’ tasks, and make team assignments (e.g., mixer, baker, quality controller, materials purchaser, accountant, marketing manager).

• Assign each task an hourly pay rate or monthly salary based on your team’s perception of the job market for the task involved.

• Give the plan compiled thus far to your instructor and all team members in writing.

2. As a team, determine cookie specifications: quality, size, appearance, and special features (such as types of chips or nuts), as well as quantity and packaging.

3. As a team, select a cookie recipe that best fits the company’s mission.

4. As a team, answer the following questions and submit the answers to your instructor:

• Will your company use actual or normal costing when computing the cost per cookie? Explain your answer.

• List the types of costs that your company will classify as overhead.