He alford group had 220,000 shares of common stock outstanding at january 1, 2018. the following activities affected common shares during the year. there are no potential common shares outstanding. 2018 feb. 28 purchased 24,000 shares of treasury stock. oct. 31 sold the treasury shares purchased on february 28. nov. 30 issued 96,000 new shares. dec. 31 net income for 2018 is $1,590,000. 2019 jan. 15 declared and issued a 2-for-1 stock split. dec. 31 net income for 2019 is $1,590,000.

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?