Discussion 2 Response 2

Submit a meaningful reply of 400 – 450 words to the below post. Synthesize course material and demonstrate critical thinking, graduate-level writing skills, and reflection.
 Cite the textbooks and scholarly articles from professional accounting and business journals.  Use you textbook (attached) and at least 3 journal articles as references  Include Biblical integration in response to each question posed and in the analysis of each peer’s post demonstrate analysis, synthesis of all course materials, tact, and insight.
Opinion is worth little unless it is supported by quotes and/or paraphrases from the textbooks and professional journals. Adhere to current APA format in all posts.
Abstract
In the time that business has been around, so has the idea of cost and profit. According to research from Codjia (2017), cost pertains to money a business spends to acquire materials for resale or inclusion in its production cycle while profit equals total revenues minus accounting costs. Simply put, cost is what a business pays to work on a project while profit is the money they make minus expenses. The company selected for this research is Whole Foods. Whole Foods uses both cost estimation and profit planning to successfully execute its projects.
Keywords: cost estimation, cost management, profit planning, strategy
Cost Estimation and Profit Planning: Whole Foods
Cost estimation is a statement that gives the value of the cost. According to research from Blocher et. al. (2021), it is the development of a well-defined relationship between a cost object and its cost drivers. The purpose of the cost estimation is to predict cost. It helps predict future costs, identify key cost drivers, and is useful in planning and decision making. In research from Suwanjang and Prompoon (2012), cost estimation is one of the most challenging works to do because the information on cost is not known until the final stage of the project. However, the cost of a project needs to be estimated at the initial stage of the project to calculate a total amount that determines a project’s budget. Although cost estimation can be challenging, it is an essential part of the project that helps to manage all a project’s affiliated costs to keep the project on budget and deliver on time.
Profit planning is the set of actions taken to achieve a targeted profit level. According to research from Blocher et. al. (2021), it is a method of analyzing how various operating and marketing decisions affect profit. It is based on an understanding of the relationship between variable costs, fixed costs, unit selling price, and output level. In research from Parajuli and Shrestha (2020), profit planning is an income calculation. It is a pre-determination of the expenditures of a project. It predicts how much revenue will be generated and how it should be spent to meet the criteria for investment and profit. Profit planning is looking at the potential return on the investment into the project.
Cost estimation and profit planning are important aspects of managing resources that Whole Foods uses to successfully execute projects. According to research from Robertiello (2011), Whole Foods Market’s Midwest Region division uses a software recipe and inventory management control program. The purpose of the software is to value the costs related to its growing volume of food service and deli business. The software helps the division of the natural-food chain increase deli efficiency through margin controls and recipe information. It looks at the relationship between cost and cost drivers. The software helps in profit planning by calculating margin and food-cost information, leading deli officials to eliminate products when specific ingredients sometimes temporarily with fluctuating prices become too expensive. By looking at how operating and marketing decisions affect profit, Whole Foods is increasing profit by controlling margin and food cost.
Cost estimation and profit planning are a technique to count the cost. In the scriptures, it talks about counting the cost as well. In Luke, it says, “For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it? Otherwise, when he has laid a foundation and is not able to finish, all who see it begin to mock him, saying, ‘This man began to build and was not able to finish’ (Luke 14:29-30, ESV).” This scripture helps us to see that proper planning is important before we agree to a task or project. We need to analyze what is required and calculate the cost if we should accept or reject a task or project. For Christians, this is an important aspect of discipleship as we need to consider what it would cost and what is involved to become a disciple of Jesus. Business leaders would do well to incorporate counting the cost in business. Before investing time and resources into a project, a business should count the cost by estimating the cost and establishing a target profit.
References
Blocher, E., Juras, P., & Smith, S. (2021). Cost management: A strategic emphasis (9th ed.). McGraw Hill.
Codjia, M. (2017, November 21). Difference between accounting costs & accounting profit. Small Business – Chron.Com. https://smallbusiness.chron.com/difference-between-accounting-costs-accounting-profit-26278.html
Parajuli, D., & Shrestha, P. (2020). Strategic profit planning and organizational performance in public sector commercial banks of Nepal. Research Journal of Finance and Accounting, 11(22). https://doi.org/10.7176/rjfa/11-22-01
Robertiello, J. (2011, December 31). Whole Foods cooks up cost management for deli with software. Supermarket News. https://www.supermarketnews.com/archive/whole-foods-cooks-cost-management-deli-software
Suwanjang, H., & Prompoon, N. (2012). Framework for developing a software cost estimation model for software modification based on a relational matrix of project profile and software cost using an analogy estimation method. International Journal of Computer and Communication Engineering, 129–134. https://doi.org/10.7763/ijcce.2012.v1.36
planningcost
ATTACHED FILE(S)
Criteria Ratings Points
Management
Technique
4 to >3.0 pts
Advanced
Thread clearly specifies the
company, the industry, and the
management technique to be
analyzed
3 to >2.0 pts
Proficient
Thread clearly specifies the
company and industry but
not the technique
2 to >0.0 pts
Developing
Company
identified but
not the industry
0 pts
Not
Present
4 pts
Evaluation
Appropriateness
of Technique
12 to >10.0 pts
Advanced
Technique appropriate for
company, description
developed and includes
adequate details detailed
correlation between technique
and company
10 to >9.0 pts
Proficient
Technique described but
not in a detailed manner.
Few details and no
correlation
9 to >0.0 pts
Developing
Technique
identified but no
detail as how it
applies to
company
0 pts
Not
Present
12 pts
Synthesis Positive
Force of
Technique
12 to >10.0 pts
Advanced
Thread describes how the
technique selected will be a
positive force for the company
and provides appropriate
examples. One or two
examples provided
10 to >9.0 pts
Proficient
Description of impact of
technique to company but
incorrect examples
9 to >0.0 pts
Developing
Description of
impact of
technique to
company but no
examples
0 pts
Not
Present
12 pts
Originality Overall
Content
28 to >25.0 pts
Advanced
Thread conforms to the
instructions. Content is well
developed. Included originality
of thought. Paragraph
structure and flow is excellent.
Analysis of the technique
selected is provided.
Questions are answered
thoroughly and supported
using substantial research
data
25 to >23.0 pts
Proficient
Thread conforms to the
instructions. Content is
developed but lacks
originality of thought. Too
many direct
quotations.Paragraph
structure and flow is
excellent. Analysis of the
technique selected is
provided. Minimal research
sources used
23 to >0.0 pts
Developing
Content is
organized
based mainly
on text little
collaborating
research data
0 pts
Not
Present
28 pts
Discussion: Cost Management, Strategy, Technique Grading Rubric |
BUSI601_B02_202230
Criteria Ratings Points
Replies: New
Information
10 to >9.0 pts
Advanced
Reply introduces new and
relevant information to the
discussion of management
technique
9 to >7.0 pts
Proficient
Introduces new information
with little relevance
management techniques
7 to >0.0 pts
Developing
Introduces new
information with
no relevance to
management
technique
0 pts
Not
Present
10 pts
Replies:
Evaluation
Research support
and originality
30 to >27.0 pts
Advanced
Synthesis of research data
Reply is well supported with
the referenced sources and
expounds on discussion of
technique
27 to >24.0 pts
Proficient
Minimum analysis of
researched data Reply
minimally referenced with
research sources
24 to >0.0 pts
Developing
Researched
provided but no
analysis of
information
0 pts
Not
Present
30 pts
Thread:
Grammar,
Spelling and APA
formatting
13 to >11.0 pts
Advanced
No grammar or spelling errors
11 to >10.0 pts
Proficient
Only one minor error and 1
APA error
10 to >0.0 pts
Developing
Two grammar
errors and at
least 2 APA
errors
0 pts
Not
Present
13 pts
Thread: Text and
Journal Support
11 to >10.0 pts
Advanced
Thread contains appropriate
word count and content
supported with text and
relevant scholarly research
data
10 to >9.0 pts
Proficient
Thread contains
appropriate word count and
content not supported with
text and relevant scholarly
research data
9 to >0.0 pts
Developing
Thread had
irrelevant
scholarly
sources and
unsubstantiated
opinion
statements
0 pts
Not
Present
11 pts
Replies:
Grammar/Spelling
and APA
formatting
20 to >17.0 pts
Advanced
No grammar or spelling errors
17 to >16.0 pts
Proficient
Only one minor error and 1
APA error
16 to >0.0 pts
Developing
Two grammar
errors and at
least 2 APA
errors
0 pts
Not
Present
20 pts
Discussion: Cost Management, Strategy, Technique Grading Rubric |
BUSI601_B02_202230
Criteria Ratings Points
Replies: Text and
Journal Support
10 to >9.0 pts
Advanced
Thread contains appropriate
word count and content
supported with text and
relevant scholarly research
data
9 to >7.0 pts
Proficient
Thread contains
appropriate word count and
content not supported with
text and relevant scholarly
research data
7 to >0.0 pts
Developing
Thread had
irrelevant
scholarly
sources and
unsubstantiated
opinion
statements
0 pts
Not
Present
10 pts
Total Points: 150
Discussion: Cost Management, Strategy, Technique Grading Rubric |
BUSI601_B02_202230

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