Activity-Based Costing (ABC) Implementation at Microsoft

Values:

• Total Support Costs: $1,000,000
• Number of Projects: 20
• Number of Cost Drivers: 5

Requirements: Create a bullet list to explain the implementation of an ABC system at Microsoft.

• Identify cost drivers in Microsoft's support functions.
• Allocate support costs to different projects based on activity-based costing principles.
• Compare traditional costing methods with ABC.
• Recommend strategies to optimize cost allocation and improve project profitability.