The residential division of prism's high-speed internet service uses one advertising agency, while its commercial division uses another. two analysts, andy and brad, are asked to test the effectiveness of the two agencies. andy proposes an a/b test that compares the click-through rates per ad of the two agencies. brad proposes a difference-in-difference test in which the budgets for both agencies are increased by 50%, and the percentage changes in the click-through rates are compared. true or false: andy's proposal is more likely than brad's to suffer from bias due to issues with "representativeness."

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?