Question: Analyze the cost allocation process at Amazon.com Inc. Using ABC, allocate the following costs to its three main business segments: North America, International, and Amazon

Analyze the cost allocation process at Amazon.com Inc. Using ABC, allocate the following costs to its three main business segments: North America, International, and Amazon Web Services (AWS). Assume the total indirect costs are $10,000,000, and the cost drivers for each segment are as follows: North America - Number of orders (200,000 orders), International - Number of countries served (50 countries), AWS - Number of server hours (100,000 hours). Determine the overhead cost allocation for each segment.

                 

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