Bruin company received a $100,000 insurance payment on the death of its company president. the company annually paid $1,000 of non-deductible insurance premiums on the policy. bruin reported the insurance receipt as income and deducted the premium payments on its books. for asc 740 purposes, the income and deduction are characterized as: a. both are taxable temporary differencesb. both are deductible temporary differencesc. the insurance receipt is a favorable permanent difference and the premium payment is an unfavorable permanent differenced. the insurance receipt is a taxable temporary difference and the premium payment is an unfavorable permanent difference

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?