This problem fits in well with counting and skip-counting (counting by twos etc) activities and can be solved by physically modelling the biscuits and decorations with whatever objects are convenient. An important element in understanding the problem is the language of ordinal numbers, so `warm-up' activities which involve using the concepts of first, second, third and fourth would be worthwhile for young children.
For those children who are more mathematically experienced, consider linking this problem with the idea of common multiples through the multiplication tables and the Hundred chart.
Generate your own similar problems using a greater number of biscuits and different combinations of skip counting, or encourage investigation of the various possibilities. For example, can a combination of skip-counting be found that allows every biscuit to be decorated?