Apply ABC in PepsiCo to allocate R&D costs across different product lines.

Identify cost drivers such as research hours, testing, and prototype development.

Allocate costs to product lines like beverages, snacks, and health foods based on their development complexity.

Analyze line profitability using ABC allocations and recommend strategies to optimize R&D spending.

Prepare a report showing the cost allocations and profitability analysis.

Cost Drivers	Allocation Basis	Annual Cost Allocation ($)
Research Hours	Number of hours	$60,000,000
Testing	Number of tests	$40,000,000
Prototype Development	Number of prototypes	$30,000,000