Companies can choose from different costing methods: process/product costing and activity-based costing. Think about a company you know and answer the following:

Company Chosen: Costco

• What are the differences between the two costing methods, and how do these apply to your company?
• What are some ABC cost drivers the company might use?
• How could the costs differ if one method is chosen over the other?
• Which method would you recommend for your company, and why?