Question
Implement an ABC system at Uber to allocate costs across different service lines. Cost Drivers Allocation Basis Annual Cost Allocation ($) Driver Hours Number of
Implement an ABC system at Uber to allocate costs across different service lines.
Cost Drivers | Allocation Basis | Annual Cost Allocation ($) |
Driver Hours | Number of hours | 300,000,000 |
Ride Distance | Number of miles | 200,000,000 |
Customer Support | Number of calls | 100,000,000 |
Requirements:
Identify cost drivers such as driver hours, ride distance, and customer support calls.
Allocate costs to service lines like UberX, UberXL, and UberEats based on complexity.
Analyze profitability using ABC allocations and recommend optimization strategies.
Prepare a report showing cost allocations and profitability analysis.
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