Company: PepsiCo, Inc.
 Data for the year ended December 31, 2023:

Item	Amount
Revenue	$65,000,000,000
Cost of Goods Sold	$30,000,000,000
Operating Expenses	$25,000,000,000
Income Tax Expense	$8,000,000,000
Net Income	$12,000,000,000
Total Assets	$100,000,000,000
Total Liabilities	$50,000,000,000
Shareholders' Equity	$50,000,000,000

Managerial Accounting Process:

1. Recording Costs:
   • PepsiCo records its cost of goods sold (COGS) at $30 billion, representing costs related to manufacturing beverages and snacks.
   • Operating expenses, including marketing, distribution, and administrative costs, are recorded at $25 billion.

1. Analyzing Costs:
   • Conduct product-level profitability analysis to assess the profitability of different beverage and snack products.
   • Perform cost variance analysis to identify opportunities for cost reduction in manufacturing and distribution.

1. Reporting Costs:
   • Present COGS in the income statement to illustrate the direct costs associated with producing beverages and snacks.
   • Detail operating expenses to provide transparency on costs incurred to support brand promotion and distribution.
   • Provide cost allocation reports to show how costs are distributed across different product categories and geographic regions.

Requirements:

1. Calculate PepsiCo's gross profit margin and discuss cost management strategies in the consumer goods and beverage industry.
2. Determine PepsiCo's operating profit margin and analyze the impact of cost controls on profitability and market competitiveness.
3. Analyze the impact of income tax expense on PepsiCo's net income and propose tax planning strategies to optimize tax liabilities.
4. Evaluate how PepsiCo recognizes revenue from beverages and snacks sales and its relationship with cost management.
5. Explain the significance of the Income Measurement Objective in PepsiCo's financial planning and its impact on cost allocation and reporting.
6. Discuss PepsiCo's current ratio and quick ratio, considering the influence of cost management on liquidity and financial stability.
7. Perform a Cost-Benefit Analysis of PepsiCo's investment in sustainable packaging, including projected costs and expected benefits in brand reputation and environmental impact.