1. Chapter 4
Whatwould cause a manager to believe that activity-based costing (ABC) should be implemented inhis/her manufacturing facility where unit-based costing has been used to this point? What violations ofprevious assumptions, if any, have occurred? Are there instances where ABC is either not advisableand/or not necessarily a good idea? Please discuss your understanding of ABC implementation.
2. Chapter 5
The chapter states that “our economy has become increasingly service-oriented.” (p. 205) Do you agree or disagree? If you agree, why do you think we are now more service-oriented than we have been to this point? If you disagree, please explain why you do so and cite examples of why this service orientation is no greater now than is has been before.
The textbook states that the theoretical and practical activity levels reflect, in general, the company’s production capabilities, while the expected and normal activity levels reflect, in general, consumer demand. Please explain why these breakdowns are correct, including possible examples of what is being described by each of the activity levels.