Starbucks and its treatment of allocated costs
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Retrieve any report in the Starbucks organization that allocates common costs to a division, product, or service. Recast that report with unallocated costs and comment on the usefulness of that revised report.
If you cannot identify specific actual amounts, make a reasonable estimate and apply the tool as if the data were factual.
If you are unable to identify any report with allocated costs, create a report that you think may apply to your organization and treat the data as if it were factual.
Include:
- The activity and time period you used
- The inputs you used
- Your results
- Any implications from your results
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Solution Summary
Starbucks and its treatment of allocated costs are reported. The usefulness of a revise report is determined.
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c. Retrieve any report in the organization that allocates common costs to a division, product, or service. Recast that report with unallocated costs and comment on the usefulness of that revised report.
Starbucks is a large multinational chain of coffee shops with corporate headquarters in Seattle, Washington. The company was in part named after Starbucks, a character in Moby Dick, and its insignia is a stylized cartoon siren. It is more popular among youth. Besides coffee it also serves other drinks, both hot and cold, and pastries. The company has 130,000 employees worldwide at 11,377 stores in 37 countries and plans to grow to 30,000 stores globally. It has about 80 corporate stores in Michigan. Starbucks is opening stores at a rate of five a day and saw its ...
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