On another note, you could use geographical segments as a cost object. In your example of Starbucks, we could compare two locations, such as a Nashville location versus a Jackson location, as the cost object. Virtually, everything related to Starbucks would have a direct or indirect cost.

Direct costs would be items that could be easily traced by to each of the Starbucks locations. Comparatively, for each store these items could be coffee beans, cups, napkins, all employees salaries, rent, and store specific advertising. Importantly, each of these items must be considered with setting prices for the products in order for each store to be profitable.

Indirect costs would be items such as costs associated with the corporate office.