Company: Procter & Gamble Co. (P&G)
 Data for the year ended June 30, 2023:

Item	Amount
Revenue	$100,000,000,000
Cost of Goods Sold	$50,000,000,000
Operating Expenses	$30,000,000,000
Income Tax Expense	$10,000,000,000
Net Income	$10,000,000,000
Total Assets	$150,000,000,000
Total Liabilities	$80,000,000,000
Shareholders' Equity	$70,000,000,000

Managerial Accounting Process:

1. Recording Costs:
   • P&G records its cost of goods sold (COGS) at $50 billion, reflecting costs associated with manufacturing and distributing consumer goods.
   • Operating expenses, including marketing, R&D, and administrative costs, are recorded at $30 billion.

1. Analyzing Costs:
   • Conduct brand-level profitability analysis to assess the financial performance of different product categories, such as beauty, grooming, and healthcare.
   • Perform cost variance analysis to identify opportunities for cost reduction in manufacturing and distribution processes.

1. Reporting Costs:
   • Present COGS in the income statement to illustrate the direct costs associated with producing and delivering consumer products.
   • Detail operating expenses to provide transparency on costs incurred to support brand building, innovation, and corporate functions.
   • Provide cost allocation reports to show how costs are distributed across different brands, markets, and distribution channels.

Requirements:

1. Calculate P&G's gross profit margin and discuss cost management strategies in the consumer goods industry.
2. Determine P&G's operating profit margin and analyze the role of cost controls in maintaining profitability amidst competitive pressures.
3. Analyze the impact of income tax expense on P&G's net income and propose tax strategies to optimize tax efficiency and compliance.
4. Evaluate how P&G recognizes revenue from consumer product sales and its relationship with cost management practices.
5. Explain the significance of the Income Measurement Objective in P&G's financial reporting and its alignment with cost allocation methodologies.
6. Discuss P&G's debt-to-equity ratio and liquidity ratios, considering the influence of cost management on financial leverage and capital structure.
7. Perform a Cost-Benefit Analysis of P&G's investment in sustainable packaging solutions, including projected costs and expected benefits in environmental stewardship and consumer perception.