Company: Procter & Gamble Co.
 Data for the year ended December 31, 2023:

Item	Amount
Revenue	$80,000,000,000
Cost of Goods Sold	$40,000,000,000
Operating Expenses	$25,000,000,000
Income Tax Expense	$10,000,000,000
Net Income	$15,000,000,000
Total Assets	$200,000,000,000
Total Liabilities	$100,000,000,000
Shareholders' Equity	$100,000,000,000

Managerial Accounting Process:

1. Recording Costs:
   • Procter & Gamble records its cost of goods sold (COGS) at $40 billion, reflecting costs associated with manufacturing consumer goods.
   • Operating expenses, including marketing, distribution, and research, are recorded at $25 billion.

1. Analyzing Costs:
   • Analyze product-level profitability to understand which brands contribute most to revenue and profit.
   • Conduct cost variance analysis to identify cost-saving opportunities in manufacturing and distribution.

1. Reporting Costs:
   • Include COGS in the income statement to illustrate the direct costs of producing goods sold.
   • Detail operating expenses to provide insight into the costs incurred to support business operations.
   • Provide cost allocation reports to show how costs are distributed across different product lines and regions.

Requirements:

1. Calculate Procter & Gamble's gross profit margin and discuss cost management strategies in the consumer goods industry.
2. Determine Procter & Gamble's operating profit margin and analyze the impact of cost controls on profitability.
3. Analyze the impact of income tax expense on Procter & Gamble's net income and propose tax planning strategies.
4. Evaluate how Procter & Gamble recognizes revenue from consumer goods sales and its relationship with cost allocation.
5. Explain the significance of the Income Measurement Objective in Procter & Gamble's financial planning and its impact on cost reporting.
6. Discuss Procter & Gamble's current ratio and quick ratio, considering the influence of cost management on liquidity ratios.
7. Perform a Cost-Benefit Analysis of Procter & Gamble's sustainability initiatives, including projected costs and long-term benefits.