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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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