Implement an ABC system at Nike to allocate product development costs to different shoe lines.

Identify cost drivers related to design hours, material costs, and testing.

Allocate costs to lines like running, basketball, and lifestyle based on their design complexity and market demand.

Analyze line profitability using ABC allocations and recommend strategies to optimize product development and marketing.

Cost Drivers	Allocation Basis	Annual Cost Allocation ($)
Design Hours	Number of hours	$20,000,000
Material Costs	Amount of materials	$25,000,000
Testing	Number of tests	$15,000,000