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Apply ABC to analyze customer profitability and allocate costs at Walmart Inc. Identify cost drivers in Walmart's retail operations, such as store square footage, checkout

Apply ABC to analyze customer profitability and allocate costs at Walmart Inc.

Identify cost drivers in Walmart's retail operations, such as store square footage, checkout process, and inventory management.

Implement an ABC system to allocate costs to different product categories based on their sales volume and shelf space.

Analyze profitability using ABC allocations and recommend strategies to improve cost efficiency and customer satisfaction.

Cost Drivers

Allocation Basis

Annual Cost Allocation ($)

Store Square Footage

Square feet

$50,000,000

Checkout Process

Number of transactions

$20,000,000

Inventory Management

Inventory turnover rate

$30,000,000

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