3-2 Assignment Costing Methods

.docx

School

Kennesaw State University *

*We aren’t endorsed by this school

Course

206

Subject

Accounting

Date

Apr 3, 2024

Type

docx

Pages

4

Uploaded by CaptainMosquitoMaster84

3-2 Assignment: Costing Methods Southern New Hampshire University Managerial Accounting Mark Macknight January26, 2024
Company Overview : The company I know and have worked with for the past 11 years as a team lead is Walmart/Sam's Club. I worked for Walmart for three years and then transferred to Sam's Club as a team lead. A division of Walmart Inc., we are the membership warehouse club solution for everyday living. Our President and CEO is Chris Nicholas, and our headquarters is in Bentonville, AR. For the fiscal year ending January 31, 2023, Sam's Club's total revenue was  $84.3 billion . Almost 600 U.S. and Puerto Rico clubs, each averaging approximately 136,000 square feet. Our first Club opened in Midwest City, Oklahoma, in 1983. Many clubs include sustainable features such as daylighting with skylights, night dimming, central energy management, water-conserving fixtures, natural concrete floors, and recycling. Costing Methods:  Walmart could apply job order and process costing methods. Job order costing could be used in its online personal shopping service, where each order is unique, and costs can be traced directly to each job. On the other hand, process costing could be applied in its grocery department, where large quantities of similar items are processed and sold. The costs could differ significantly if one method is chosen over the other. For instance, using job order costing for the grocery department would be inefficient and costly due to the high volume and similarity of the products. Sam's Club, a membership-only retail warehouse owned by Walmart Inc., uses job order costing and process costing methods. Job order costing is a method that calculates the cost of specific orders, jobs, or batches. This method is typically used in businesses with unique or customized products or services. At Sam's Club, job order costing might be applied to special orders for customers, customized cakes in the bakery department, or personalized items in the photo department. For example, if a customer
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help