General Electric Co. is evaluating its production costs using different accounting methods:

Requirements:

• Calculate the COGS using Marginal Cost Accounting for a specific product line:
  • Variable Costs: $3,000,000
  • Fixed Costs: $1,500,000

• Implement Activity-Based Costing (ABC) to allocate overhead costs for better cost accuracy.
• Compare the COGS calculated under Marginal Cost Accounting and ABC.
• Evaluate the advantages of ABC over Marginal Cost Accounting in decision-making.
• Discuss how Standard Cost Accounting could be integrated to establish cost benchmarks.

COGS Table (Marginal Cost Accounting):

Category	Amount ($)
Variable Costs	$3,000,000
Fixed Costs	$1,500,000
Total COGS	$4,500,000