Cost Analysis of a Snack Item

Option #1: Portfolio Project Milestone

Review the requirements for the Portfolio Project. You will be required to select a snack item and demonstrate your knowledge of cost analysis for that product. Submit your selected product to your instructor and write a page on your rationalization for selection, noting which portfolio option you selected, in Word. This submission is worth 25 points of your portfolio project due in Module 8.

Your paper should meet the following requirements:

One page in length. In addition to your one-page rationalization, be sure to include a title page and a reference page for any references used.
Formatted according to the CSU-Global Guide to Writing and APA.

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Below is the Portfolio Project for reference:

OPTION #1: COMPREHENSIVE PRODUCT COSTING (7-10 PAGES)

Select your favorite drink or snack item manufactured by a publicly held company. For this product predict the following:

Where is the product manufactured?
Given the suggested retail price of the company and using a 50% markup on price at retail, determine the sell price to the distributor/merchandiser. Review the company’s overall gross margin. If the product is sold direct to the consumer, you may apply the gross margin as calculated. Applying the gross margin percentage to your product sales price, infer the cost of the product. Present your calculations in a supporting table.
Complete the same exercise for a competitor’s product of the same type. Present your calculations in a supporting table included in your paper.
Comment on the differences in cost between the two competitors, and assert the reason for this difference (e.g., does the company compete on cost or differentiation?)
Apply the concept of the value chain to this product. What types of costs would be relevant for each segment of the value chain for this product?
Research a single critical ingredient of your snack and its source. Do you expect significant increases in the cost of this ingredient over the next year? Support your response with input from the commodities market or other economic data.
What are the opportunities to offset this price increase, maintain gross margin, and offer the product to consumers at the same price currently? Present your calculations in a supporting table included in your paper.

In your analysis, include the following:

An introduction
Requirements 1 – 7 (do not forget to show your work)
Conclusion

Your paper should meet the following requirements:

7-10 pages in length including supporting tables (required number of pages does not include the title page and the reference page)
Formatted according to CSU-Global standards
Include at least 2-3 outside sources

1 hour ago

REQUIREMENTS

accounting Act

Answer preview…………

Cost analysis refers to the measure of the output relationship due to the concern to determine the costs incurred in hiring and employing various inputs and arranging them to increase the output of a firm (Drury, 2013).

The cost analysis of oat cookies takes into consideration the direct costs involved, the indirect costs and a proper organization of these costs to evaluate the unit cost per item of the cookies. The direct costs associated with the production of oat cookies include the cost of ingredients such as butter, white and brown sugar, eggs, vanilla, oats, and flour, baking powder, baking soda, salt and chocolate chips. Additionally, the direct costs include the cost of the staff engaged in the production of the cookies as well as the equipment and tools used in the production process……….

APA 359 words