A) Amazon operates a vast network of fulfillment centers to manage its online retail operations efficiently. For one of its high-volume fulfillment centers, the total costs incurred for receiving activities amounted to $500,000, covering expenses such as unloading, inspection, and storage. Additionally, the center spent $750,000 on packaging activities, including materials, labor, and equipment usage.

i) Using activity-based costing principles, allocate the receiving and packaging costs to individual products based on the number of receiving transactions and packaging transactions.

ii) Discuss the relevance of activity-based costing in a dynamic and complex operating environment like Amazon's. Highlight how ABC helps in understanding cost drivers and improving cost management practices.

iii) Suggest potential strategies Amazon could implement to optimize its fulfillment center operations and reduce costs based on insights gained from activity-based costing analysis. Consider aspects such as process improvement, technology integration, and inventory management. (20 marks)