Client1 I am 16 years old and I love little kids. I like to organize special events—like birthday parties
for children. I have decided that a great way to eam extra money is to provide families with
children's birthday parties for a modest fee. I do it all-arrange the food supply the music,
decorate the party room play games, give away small prizes, eren play the part of Bongo, the
Birthday Clown. Families I know love the idea. I have an advertising plan figured out, with
posters to put up at the local grocery stores.
What type of business organization do you recommend? Why?

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?