Apply ABC to analyze customer profitability and allocate costs at Amazon.

Identify cost drivers in a service industry setting such as order processing, shipping, and customer service.

Implement an ABC system to allocate costs to different customer segments.

Analyze customer profitability based on ABC allocations.

Recommend strategies to enhance profitability and customer value.

Cost Drivers	Allocation Basis	Annual Cost Allocation ($)
Order Processing	Number of orders	$100,000,000
Shipping	Number of shipments	$80,000,000
Customer Service	Number of inquiries	$50,000,000