Which one of the following is not a justification for adjusting entries?
a. adjusting entries are necessary to ensure that the expense recognition principle is followed.
b. adjusting entries are necessary to bring the general ledger accounts in line with the budget.
c. adjusting entries are necessary to enable financial statements to be in conformity with gaap.
d. adjusting entries are necessary to ensure that the revenue recognition principle is followed.

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?