COSTING METHOD

submit a written paper based on the different costing methods for STARBUCKS COFFEE SHOP. Be sure and provide a paragraph covering each of these prompts. Also, be sure and add the title, bolded and underlined, for each paragraph. The paragraphs should be as follows

Company Overview: of STARBUCKS COFFEE, including specifying whether it is a manufacturing, merchandising, or service organization.Personally, I think a manufacturing company is easier to apply the concepts.

Costing Methods: Compare the job order and process costing methods; explain how each of these can be applied to STARBUCKS COFFEE BUSINESS; specify how the costs would be affected in each method. In other words, which is better for your company: job or process costing? Why? And how would this affect how the costs are tracked? But be sure and discuss both and justify one over the other for your company.

Factory Overhead: Outline possible indirect or overhead costs the company may need to account for; identify the type of costing the company might use for these costs; identify more than one activity base the company may use if it chooses ABC to allocate overhead costs. Keep in mind that companies apply overhead to a product based on a "predetermined overhead rate". Some companies have more than one overhead rate - maybe one for each department or each activity. If you were to have more than one overhead rate, what would be the activity base for each rate.

Recommendation: Recommend a costing method for the company; use sound reasoning to explain why this method will work best for the business. In other words, now that you have discussed the different costing methods, which would be best for your company and why? Also, how will you be allocating overheads?