The matching principle requires that expenses be matched to revenue so that efforts are matched to accomplishments. Which of the following reflects proper matching? a. Cost of goods sold is recorded when a sale is made. b. A patent is recorded as an asset at the time of purchase from an inventor. c. Construction of a building is completed on October 1 and depreciation is taken for the full calendar year (calendar year is the fiscal year). d. A loss on sale of an investment is allocated

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?