Use the following scenario to answer the following questions: babak owns a sports practice facility called boston batting cages in boston, massachusetts. during the first year of operation, boston batting cages incurred many costs. in that year, babak spent $5,000 on labor, $2,000 on maintenance, and $1,000 on electricity. babak took out a loan to open his business, in which he would have earned $1,500, and his previous job, which he could get back at any time, paid him $50,000. if boston batting cages received $80,000 in revenues, what were the accounting profits? group of answer choices

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?