Question
Implement ABC in Coca-Cola to allocate production costs across different beverage lines. Identify cost drivers such as production batches, machine hours, and ingredient usage. Allocate
Implement ABC in Coca-Cola to allocate production costs across different beverage lines.
Identify cost drivers such as production batches, machine hours, and ingredient usage.
Allocate costs to beverage lines like soft drinks, juices, and bottled water based on their production complexity.
Analyze line profitability using ABC allocations and recommend strategies to optimize production.
Prepare a report showing the cost allocations and profitability analysis.
Cost Drivers | Allocation Basis | Annual Cost Allocation ($) |
Production Batches | Number of batches | $90,000,000 |
Machine Hours | Number of hours | $80,000,000 |
Ingredient Usage | Amount of ingredients | $70,000,000 |
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