Despite aggressive campaigns to attract customers with lower mobile phone prices, Telenor- has been losing large number of monthly subscribers. Management wants to know why so many
customers are leaving Telenor and what can be done to entice them back. Are customers
deserting because of poor customer services, uneven network coverage, or wireless service
charges? How can the company use information systems to help find the answer? What
management decisions could be made using information from these systems?

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?