Cost Allocation and Performance Evaluation at Subaru

Requirements:

1. Develop a cost allocation method for Subaru's manufacturing facilities to allocate overhead costs to different vehicle models.

• Implement an activity-based costing (ABC) system to allocate manufacturing overhead costs to Subaru's sedan and crossover models.
• Evaluate the accuracy and effectiveness of cost allocation methods in measuring profitability for Subaru's vehicle lineup.
• Recommend cost allocation improvements to enhance decision-making and performance evaluation at Subaru.