Description of the chosen company There are many companies in the United States of America that offer services to their customers using electronic means such as e-commerce. United Parcel Service of America Incorporation (UPS) is among the companies that are in the service industry and utilize electronic media in carrying out its activities. UPS offers parcel delivery services and its main office is located in Sandy Springs, USA. It has many other branches worldwide but it is majorly based in USA. The company started in 1907 with James Casey as the major promoter and offered its first services the same year. During that time, its services were only available in California although other branches were later opened due to the increased demand for the company’s services. Today UPS is a global company that offers parcel transportation services all over the world. Orders for parcels to be delivered are made online by their regular as well as the first time customers. For instance, a customer in Africa who wants their luggage to be delivered from the USA will have to place an order over the internet through the company’s e-commerce website. The company officials will attend to them online and get all the relevant details in relation to the parcel and the customer. The payment process is carried out online once the customer agrees to the quoted price. Payment can be made through PayPal, credit card or a bank transfer and after payments are made, a confirmatory email is sent to the customer as proof of payment. The officers then order their transportation team to pick the luggage and follow the necessary procedures for dispatch. The customer receives their luggage after a specific duration and in case of any discrepancy, the company offers money back guarantee for the customer. This increases client confidence and loyalty (Friedman, 2006). Costing methods Costing entails establishing the costs associated with service or product delivery to customers of in a given business. There are various costing methods in use today and one decides on the appropriate method to use after analysis of the nature of their businesses and the reasons for carrying out the costing exercise. Some of the commonly used costing methods include; activity based costing (ABC), process costing and job costing. Job costing entails determining the different jobs done in the course of business, estimating their costs and identifying the wasteful jobs (Staubus, 2007). Activity costing is similar to job costing but it further breaks down jobs into activities and the costs associated with these activities are then established. Once the data on the activity costs are collected, the cost accountants identify the activities that waste resources and different ways of reducing the costs related to these activities are then explored after which the best method is adopted. This way the company is able to cut down on costs and in the process boosting its profits (Drucker, 2009). Process costing is common in the manufacturing industry where the cost accountants identify the various processes that a product goes through before being ready for sell. The cost parameters of each of the processes are then established and used to determine the respe