Company: The Walt Disney Company
 Data for the year ended September 30, 2023:

Item	Amount
Revenue	$80,000,000,000
Cost of Goods Sold	$20,000,000,000
Operating Expenses	$50,000,000,000
Income Tax Expense	$7,000,000,000
Net Income	$10,000,000,000
Total Assets	$200,000,000,000
Total Liabilities	$100,000,000,000
Shareholders' Equity	$100,000,000,000

Managerial Accounting Process:

1. Recording Costs:
   • Disney records its cost of goods sold (COGS) at $20 billion, reflecting costs associated with content production and merchandise sales.
   • Operating expenses, including production costs, marketing, and administrative expenses, are recorded at $50 billion.

1. Analyzing Costs:
   • Conduct segment-level profitability analysis to assess the financial performance of Disney's media networks, parks, and studio entertainment divisions.
   • Perform cost behavior analysis to understand cost fluctuations in content creation and theme park operations.

1. Reporting Costs:
   • Present COGS in the income statement to illustrate the direct costs associated with producing and distributing content and merchandise.
   • Detail operating expenses to provide transparency on costs incurred to support content development, marketing campaigns, and corporate functions.
   • Provide cost allocation reports to show how costs are distributed across different business segments and geographical locations.

Requirements:

1. Calculate Disney's gross profit margin and discuss cost management strategies in the entertainment and media industry.
2. Determine Disney's operating profit margin and analyze the role of cost controls in maintaining profitability across diverse business segments.
3. Analyze the impact of income tax expense on Disney's net income and propose tax strategies to optimize tax efficiency.
4. Evaluate how Disney recognizes revenue from media networks, parks, and studio entertainment and its relationship with cost management practices.
5. Explain the significance of the Income Measurement Objective in Disney's financial reporting and its alignment with cost allocation methodologies.
6. Discuss Disney's return on assets (ROA) and return on equity (ROE), considering the influence of cost management on financial performance and shareholder value.
7. Perform a Cost-Benefit Analysis of Disney's investment in streaming services, including projected costs and expected benefits in subscriber growth and market expansion.