Purchased 18-month insurance policy for cash. Prepaid Insurance 2. Paid weekly payroll. 3. Purchased supplies on account. 4. Received utility bill to be paid at later date Selaries and Wages Expense Prepaid Insurance Supplies Utilities Expense Cash Accounts Payable Utilities Expense Accounts Payable Accounts Payable Cash Utilities Expense Prepaid Insurance salaries and wages Expense ? Utilitics Expensc Accounts Payable Prepaid Insurance Salaries and Weges Expense Supplies Salaries and USlities Expense Utilities Expense Accounts Payable Supplies Debit Debit Prepaid Insurance h Prepaid Insurance Salaries and wages Expense ? Salaries and Wages Expense Accounts Payable Prepaid Insurance Utilities Expense Cash Salaries and Wages Expense Supplies Cash Supplies ar Prepaid Insurance Utilities Expense Salaries and Woges Expense

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?