Apply ABC in Tesla, Inc. to allocate R&D costs across different vehicle models.

Identify cost drivers related to engineering hours, testing, and prototype development.

Allocate costs to models like Model S, Model 3, and Model Y based on their development complexity and production volume.

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

Cost Drivers	Allocation Basis	Annual Cost Allocation ($)
Engineering Hours	Number of hours	$50,000,000
Testing	Number of tests	$20,000,000
Prototype Development	Number of prototypes	$30,000,000