Activity-Based Costing (ABC) Implementation at Infiniti

Requirements:

1. Implement an activity-based costing (ABC) system at Infiniti to allocate overhead costs.

• Identify cost drivers and allocate overhead costs to Infiniti's sedan and SUV models using ABC.
• Compare the traditional costing method with ABC to analyze the accuracy of cost allocation.
• Recommend improvements in cost management and pricing strategies based on ABC analysis for Infiniti's vehicle lineup.