1. Google implements ABC for its support activities: Information Technology ($4,000,000, 600 projects), Human Resources ($2,500,000, 400 employees), Marketing ($2,000,000, 1,200 campaigns).
   • Requirements:
     • Apply the revenue recognition principle to determine when Google should recognize revenue associated with support activities.
     • Calculate the activity rate for each support activity considering revenue recognition timelines.
     • Allocate costs to different business units based on activity usage and revenue recognition principles.
     • Analyze the cost-effectiveness of each support activity with respect to revenue recognition.
     • Recommend improvements in resource allocation and revenue recognition practices based on ABC insights.