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Google LLC operates data centers globally. In April 2029, the company incurs the following operating costs related to its cloud computing services: Data Center Rent:

Google LLC operates data centers globally. In April 2029, the company incurs the following operating costs related to its cloud computing services:

  • Data Center Rent: $30 million
  • IT Infrastructure: $40 million
  • Energy Costs: $15 million
  • Customer Support: $10 million
  • Network Security: $12 million

Required:

  • Allocate operating costs to each data center using the reciprocal allocation method.
  • Determine the cost per server processed assuming 5 million servers handled.
  • Analyze the cost structure of operating costing in cloud computing.
  • Discuss strategies to optimize data center costs at Google LLC.
  • Prepare an operating costing statement for Google LLC.

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