Discuss the following:

Based on your reading of the company’s background, Job Order and Process Cost Systems, determine whether the accounting department of Daily Grind should use a job order or process cost system to account for the beverages made and sold?
 
 
 
 

Company Bkgrund: Daily Grind Coffeehouse was founded in 2007 by two friends who love nothing more than a hot cup of joe. The company has always prided itself on putting quality first-from the beans they brew to the knowledge and friendliness of people who serve it. Their goal has always been to be the coffee shop that makes the absolute best cup of coffee in town. They strongly believe in fair trade and donate 5% of their profits to support the communities of their farming partners. The founders are co-CEO of the company. Their professional backgrounds comprise marketing and corporate law. Over the last 10 years, Daily Grind has managed to grow from a single storefront to a local coffee chain with eleven brick-and-mortar locations within California. Daily Grind Coffeehouses are decorated with a retro industrial vibe. They feature art and signage that tells the story of their crop-to-cup process and educate customers on various coffee- related topics. This privately-held LLC offers premium coffee beverages and breakfast items. Each of their cafs average $2,750 in sales per day, with some locations performing much higher than others depending on location, square footage and whether or not they have a drive-thru (all but two locations do). The average transaction is $5.74. Last year, Daily Grind saw $10,900,000 in total revenue.