Which of the following actions would be likely to encourage a firm's managers to make decisions that are in the best interests of shareholders?A. The percentage of the firm's stock that is held by investors such as mutual funds, pension funds and hedge funds rather than by small individual investors rises from 10% to 60%. B. The percentage of executive compensation that in the form of cash is increased and the percentage coming from long-term stock options is reduced. C. The firm's founder, who is also president and chairman of the board, sells 90% of her shares. D. The state passes a law that makes it more difficult to successfully complete a hostile takeover. E. The firm's board of directors gives the firm's managers greater freedom to take whatever actions they think without obtaining board approval.

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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?

Heyak believed that the economy could be hard to measure because