Walmart Inc. is analyzing its inventory costs using different costing methods:

Requirements:

• Calculate the cost of goods sold (COGS) using Marginal Cost Accounting:
  • Variable Costs: $10,000,000
  • Fixed Costs: $5,000,000

• Implement Activity-Based Costing to allocate store operating expenses.
• Compare the COGS calculated under Marginal Cost Accounting and ABC.
• Evaluate the advantages of ABC over Marginal Cost Accounting in retail operations.
• Discuss how Standard Cost Accounting could streamline budgeting and cost management.

COGS Table (Marginal Cost Accounting):

Category	Amount ($)
Variable Costs	$10,000,000
Fixed Costs	$5,000,000
Total COGS	$15,000,000