This case is about Starbucks and its different sources of revenues. However, before this, a background of Starbucks history and business operation is explained. Starbucks' revenues are derived from its company operated retail stores, specialty operations, licensing, foodservice accounts, and other initiatives.
The purpose of this case is to discuss revenue recognition using a real world example, Starbucks Corporation. The main objective is to help students understand the decision making factors of when revenues should be recorded, which are: when the revenue is earned and realized/realizable.
- REVENUE RECOGNITION