"1/4 cup sugar, 1/2 teaspoon of food coloring, baking sheet and 10 mins in oven to make edible glitter...."
Ok, first off, just no. No. That's a photo of glitter. Just plan old glitter. Now, they do make professional sugar glitter for decorating cakes, but can you make it yourself with just plain sugar and food coloring?
Ehh... sorta. You see, you can make your own colored sugar, it really is quite easy to do. Just follow the instructions above - food coloring, sugar, and bake at a low temp to help dry the sugar so it doesn't clump. But it's not going to look like glitter, it's going to look like colored sugar. In fact if you're interested, over at the blog The Sweet Adventures of Sugarbelle, she does a great write up on how to make your own color sugar for cookies, cakes and sweets, which you can read more here.
So all in all, no, you can't make edible glitter at home with table sugar, food coloring and your oven.