Analyze the companys cost structure (e.g., variable vs. fixed costs, Essay

Analyze the companys cost structure (e.g., variable vs. fit(p) be, manufacturing vs. non-manufacturing costs, direct vs. indirect costs, hypothesise costing or make for costing, etc) for starbucks - Essay ExampleWhen allocating the rent of the Starbuck salt away rent it is advisable to divide the rent by the number of coffee bags sold (Maryanne, 109).Manufacturing and non manufacturing costs Manufacturing costs are indirect factory related costs that are incurred during the manufacturing process. The cost of manufacturing overhead cost essential be assigned to each unit produced so that inventory and cost of goods sold can be valued. For the case of Starbuck Company non manufacturing costs include direct material and direct labor. Again the non manufacturing costs gift manufacturers expenses that occur apart from the manufacturing function. These expenses are not product cost and are account in a financial statement as expenses incurred. They include interest on business loan , trade and advertising costs, taxes and salaries of the staffs (Maryanne, 110).Job costing and process costing Job costing is a way of determine the cost to a company for each unit of item. This is done by taking each job as independent and how much each job cost to produce a number of units. This allows motorbus and executives to calculate the amount of profits made from each job. The Starbuck Company for each type of drink it delivers a certain price. This is an effective way of controlling the price of a product. Process costing is a process in which the company come up with long term statistics to know how the price keep on changing over time (Maryanne, 112). It also simplify record keeping hence allowing the company to when changes take to be made.Direct and Indirect Costs Material, labor and other expenses which are directly or slow traceable to a product, service or job are known as direct costs. In the production of coffee, materials are purchased, wages are paid to wor kers and certain other expenses are incurred directly (Wiley & Sons, 34). each(prenominal) these take an active and direct part in the manufacture of a product and are, therefore, called direct