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Costing And Process Cost System: Co, And Starbucks

Good Essays
Cost accounting system has two types, job order costing, and process cost system. These two cost systems are very different, almost every company uses order costing or process costing. Starbucks, is a coffee shop where citizens congregate to drink there morning coffee, study, and or socialize. Starbucks is one of the oldest and largest privately held specialty coffee retailer in the United States. (Starbucks) Their passion is to discover the flavors you love and always bring it home, delivering the look, taste and aroma of the world’s best coffee and teas. Job order costing is a very easy way in order to help Starbucks managers to know how much profit their company (Starbucks) made.
From each job they’ve done. Starbucks’s drinks are delivered
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they use the weakness of the competitor company to for example, reliance on US market, reliance on beverage innovation, lover revenue and income per employee, lower returns on quality than peers and problems in some international operations. Starbucks now are working really well on their technology in order to succeed. They now have new thing in which you can order and pay to their customer is about meeting their needs of convenience and customization at any time. Over many competitors, Starbucks now represents the easiest and fastest technology application on the phones they can be received by their customers and store partners. According to starbucks.com, the mobile order and pay feature allows customer to choose the beverage and food items. Starbucks correlates the job order cost system, by customizing the beverages in its stores. The raw materials are coffee. The works in process is the part where the customer customizes their order. An example of this step is when a guest orders the “iced coffee with two pumps of caramel syrup with soy milk. The finished product is the completed drinks that the barista makes. The cost of goods sold is the sale of the drink to the customer. It is a customized drink so the customer is paying for the “cost assigned for each job or…show more content…
Job order cost system about customization in that company. An important feature of job order cost system is that each job or batch has its own distinguishing characteristics. (Paul D. Kimmel) Coffee Bean and Tea Leaf stated that their representative creates flavors, “we work directly with tea growers in these regions in handcrafting varieties of tea that meet our exacting specifications” (coffee Bean and Tea Leaf). The main competitor is Starbucks, but Starbucks is using process cost system, which rely upon to manufacture its products. An example is when a guest orders the “iced dark roast with two pumps of caramel syrup with soy milk. The finished product is the completed drinks that the barista makes. The cost of goods sold is the sale of the drink to the customer. It is a customized drink so the customer is paying for the “cost assigned for each job or