Manuel's performance pizza is a small restaurant in chicago that sells gluten-free pizzas. manuel's very tiny kitchen has barely enough room for the three ovens in which his workers bake the pizzas. manuel signed a lease obligating him to pay the rent for the three ovens for the next year. because of this, and because manuel's kitchen cannot fit more than three ovens, manuel cannot change the number of ovens he uses in his production of pizzas in the short run. however, manuel's decision regarding how many workers to use can vary from week to week because his workers tend to be students. each monday, manuel lets them know how many workers he needs for each day of the week. in the short run, these workers are inputs, and the ovens are inputs.

Activity-based costing (abc) is not truly a cost collection mechanism as much as it is an inventory valuation method. the main purpose for implementing an activity-based cost system is to try to overcome some of the cost distortions that occur in traditional costing from product differences when there are variations in size and complexity. however, one of the disadvantages of utilizing abc is that the additional information gathering necessary to implement costing with that level of detail might be beyond the reach of some companies with resource or financial constraints. with this in mind, what kinds of industries or companies do you think would benefit most from using activity-based costing and why? in designing or modifying an accounting system to capture appropriate costs for abc, what considerations do you think would need to be made?