JPMorgan Chase & Co. is analyzing its cost structure using Standard Cost Accounting:

Requirements:

• Calculate the Standard Cost per transaction for banking operations:
  • Direct Costs: $10 per transaction
  • Indirect Costs: $5 per transaction

• Apply Activity-Based Costing to allocate IT infrastructure and customer service costs.
• Implement Marginal Cost Accounting to assess the cost impact of processing additional transactions.
• Evaluate the benefits of Standard Cost Accounting in cost control and performance measurement.
• Discuss how ABC could improve cost allocation for regulatory compliance activities.

Standard Cost Calculation:

Category	Amount per Transaction ($)
Direct Costs	$10
Indirect Costs	$5
Total Standard Cost per Transaction	$15