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Google LLC provides online services using mixed costing. In December 2035, the company incurs $300,000,000 in costs allocated based on activities: $150,000,000 for search engine

Google LLC provides online services using mixed costing. In December 2035, the company incurs $300,000,000 in costs allocated based on activities:

  • $150,000,000 for search engine operations
  • $100,000,000 for advertising services
  • $50,000,000 for cloud computing

Required:

  • Allocate costs to each activity.
  • Analyze the cost structure of Google's online services.

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