Question
Assess the cost-effectiveness of General Motors' investment in electric vehicle production using activity-based costing (ABC). Requirements: Identify cost drivers in GM's electric vehicle manufacturing processes.
Assess the cost-effectiveness of General Motors' investment in electric vehicle production using activity-based costing (ABC).
Requirements:
Identify cost drivers in GM's electric vehicle manufacturing processes.
Implement an ABC system to allocate costs across different EV models (e.g., sedans, SUVs).
Calculate the cost per electric vehicle unit using ABC allocations.
Analyze profitability and market share in the electric vehicle industry.
Recommend strategies to optimize cost efficiency and expand EV production capacity.
Cost Components for General Motors' Electric Vehicle Production:
Cost Type | Annual Amount ($) per Year |
Fixed Costs | $3,500,000,000 |
Variable Costs per Vehicle Unit | $20,000 |
Total Vehicles Produced per Year | 500,000 |
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