Implement an ABC system at Tesla, Inc. to allocate costs to different vehicle models.

Determine cost drivers in Tesla's manufacturing processes, including battery production, vehicle assembly, and R&D.

Allocate costs to vehicle models such as Model S, Model 3, and Model X based on production complexity and sales volume.

Analyze profitability across vehicle models using ABC allocations and recommend strategies to optimize production efficiency and pricing strategies.

Cost Drivers	Allocation Basis	Annual Cost Allocation ($)
Battery Production	Kilowatt-hours produced	$20,000,000
Vehicle Assembly	Number of units assembled	$18,000,000
R&D	Number of patents filed	$15,000,000