Think about a company you know. This could be a current or past employer or a company you admire. Consider its business activities and the type of products and services offered. Reflect on the different costing methods and speculates on how they might apply to your selected company.

The company I chose is American-retailer Target.

Target is one of the largest retailers in the United States and operates with over 1,900 stores, 55 supply chains and 28 office buildings across the United States. Target is a general merchandise and food retailer as they offer apparel, cosmetics, food and beverages, home dcor, electronics and household essentials.

• Costing Methods: Compare the job order and process costing methods, and explain how each of these can be applied to the company.
  • How could the costs differ if one method is chosen over the other?