Implement an ABC system at Starbucks to allocate operational costs to different store locations.

Identify cost drivers related to store size, customer transactions, and inventory turnover.

Allocate costs to stores based on their operational intensity and sales volume.

Analyze store profitability using ABC allocations and recommend strategies to enhance operational efficiency and customer experience.

Cost Drivers	Allocation Basis	Annual Cost Allocation ($)
Store Size	Square feet	$30,000,000
Customer Transactions	Number of transactions	$20,000,000
Inventory Turnover	Inventory turnover rate	$10,000,000