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Facebook, Inc. operates social media platforms globally. In May 2029, the company incurs the following operating costs related to its advertising services: Marketing and Advertising:

Facebook, Inc. operates social media platforms globally. In May 2029, the company incurs the following operating costs related to its advertising services:

  • Marketing and Advertising: $50 million
  • Data Analytics: $30 million
  • Content Moderation: $20 million
  • Platform Development: $25 million
  • User Support: $15 million

Required:

  • Calculate the total operating costs for Facebook, Inc.
  • Determine the cost per user served assuming 1 billion active users.
  • Analyze the fixed and variable components of operating costs.
  • Discuss the cost behavior of operating costs in the social media industry.
  • Recommend cost management strategies for Facebook, Inc.

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