Google LLC implemented an ABC system to improve cost allocation accuracy and enhance decision-making processes....
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Accounting
Google LLC implemented an ABC system to improve cost allocation accuracy and enhance decision-making processes. The ABC implementation involves identifying cost drivers for various activities and allocating overhead costs accordingly. The cost accountant collected data on activity costs and identified the following cost drivers:
- Number of server requests
- Number of user interactions
- Volume of data processed
- Complexity of algorithms
Develop an ABC system tailored to Google LLC's operations and allocate overhead costs to each cost pool using the appropriate cost drivers.
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