Question: Compare and contrast different cost allocation methods used by Alphabet Inc. for assigning overhead costs to its products or services. Evaluate the strengths and weaknesses

Compare and contrast different cost allocation methods used by Alphabet Inc. for assigning overhead costs to its products or services. Evaluate the strengths and weaknesses of traditional methods, such as direct labor hours and machine hours, versus activity-based costing (ABC). Recommend the most appropriate cost allocation method for Alphabet based on its cost structure and operational characteristics.

Values:

Total Overhead Costs: $20,000,000
Number of Cost Pools: 5
Allocation Bases: Vary by method

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