Maria's budget was almost gone on her project but she still had a few tasks
to complete. Which of the following would help her bring the budget back in
line?
O
A. She should try to find ways to cut back on or cancel a remaining
task.
O
B. She should outsource the remaining work to keep her labor costs
down
O
C. She should extend the project completion date.
O
D. She should have more people work on the project.

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?