Bonita co. reports the following information for 2020: sales revenue $778,100, cost of goods sold $510,600, operating expenses $86,300, and an unrealized holding loss on available-for-sale debt securities for 2020 of $54,800. it declared and paid a cash dividend of $12,210 in 2020. bonita co. has january 1, 2020, balances in common stock $361,500; accumulated other comprehensive income $86,900; and retained earnings $97,980. it issued no stock during 2020. (ignore income taxes.)

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?