Apply ABC in PepsiCo to allocate distribution costs across different product lines.

Identify cost drivers such as delivery frequency, shipment volume, and transportation distance.

Allocate costs to product lines like beverages, snacks, and cereals based on their distribution complexity and volume.

Analyze line profitability using ABC allocations and recommend strategies to optimize distribution efficiency.

Cost Drivers	Allocation Basis	Annual Cost Allocation ($)
Delivery Frequency	Number of deliveries	$15,000,000
Shipment Volume	Volume of shipments	$20,000,000
Transportation Distance	Distance traveled	$10,000,000