You are a professor of economics at a university. you've been offered the position of serving as department head, which comes with an annual salary that is $8 comma 5008,500 higher than your current salary. however, the position will require you to work 200 additional hours per year. suppose the next best use of your time is spending it with your family, which has value of $2020 per hour.

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?