Question
Starbucks statement from 10-K: Sales of products to manufacturers that produce, market and sell our products through licensing agreement (the small bottles of iced coffee
Starbucks statement from 10-K:
"Sales of products to manufacturers that produce, market and sell our products through licensing agreement (the small bottles of iced coffee produced, marketed and distributed by a third party and shipped to WAWA or Target to be sold to the consumer) are accounted for when the product is received by the distributor (that being WAWA or Target).
Costs of the products are accounted for as inventory of Starbucks and kept at the third party and then accounted for as cost of goods sold when the item is shipped to the distributor (WAWA or Target). This is an example of _________________.
a.Matching principle
b.Deferred revenue
c.One-time charge
d.Historical cost
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