Data for the year ended December 31, 2023:

Item	Amount
Revenue	$90,000,000,000
Cost of Goods Sold	$70,000,000,000
Operating Expenses	$15,000,000,000
Income Tax Expense	$5,000,000,000
Net Income	$5,000,000,000
Total Assets	$250,000,000,000
Total Liabilities	$150,000,000,000
Shareholders' Equity	$100,000,000,000

Managerial Accounting Process:

1. Recording Costs:
   • General Motors records its cost of goods sold (COGS) as $70 billion, representing the direct costs incurred to produce vehicles.
   • Operating expenses, such as research and development, marketing, and administrative expenses, are recorded at $15 billion.

1. Analyzing Costs:
   • Analyze the cost structure to understand the profitability of different vehicle models and product lines.
   • Conduct variance analysis to compare actual costs against budgeted costs to identify areas of improvement.

1. Reporting Costs:
   • Prepare cost of goods sold statements to show the cost of manufacturing vehicles.
   • Include operating expenses in the income statement to provide a comprehensive view of expenses incurred.
   • Provide cost analysis reports to management to aid in decision-making regarding pricing, cost control, and operational efficiency.

Requirements:

1. Calculate General Motors' gross profit margin and explain how it impacts pricing strategies.
2. Determine General Motors' operating profit margin and discuss cost management strategies to improve profitability.
3. Analyze the impact of income tax expense on General Motors' net income and suggest tax planning strategies.
4. Evaluate how General Motors recognizes revenue from automotive sales and its implications on cost allocation.
5. Explain the significance of the Income Measurement Objective in General Motors' financial reporting and its relation to cost allocation.
6. Discuss General Motors' debt-to-equity ratio and liquidity position, considering the impact of costs on financial ratios.
7. Perform a Cost-Benefit Analysis of General Motors' investment in electric vehicle technology, including projected costs and benefits over time.