Question
Analyze the financial impact of Microsoft's investment in cloud computing using activity-based costing (ABC). Requirements: Identify cost drivers in Microsoft's cloud infrastructure and service development.
Analyze the financial impact of Microsoft's investment in cloud computing using activity-based costing (ABC).
Requirements:
Identify cost drivers in Microsoft's cloud infrastructure and service development.
Implement an ABC system to allocate costs across different cloud services (e.g., Azure, Office 365).
Calculate the cost per user subscription using ABC allocations.
Analyze profitability and market share in the cloud services industry.
Recommend strategies to optimize cost management and enhance service scalability.
Cost Components for Microsoft's Cloud Computing Services:
Cost Type | Annual Amount ($) per Year |
Fixed Costs | $4,500,000,000 |
Variable Costs per User Subscription | $50 |
Total Subscribers per Year | 100,000,000 |
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