In 1949, sycamore, illinois built a hospital for about $500,000. in 1987, the county restored the courthouse for about $1.7 million. a price index for nonresidential construction was 24 in 1949, 108 in 1987, and 126.5 in 2000. according to these numbers, the hospital cost abouta.$2.1 million in 2000 dollars, which is less than the cost of the courthouse restoration in 2000 dollars. b.$2.1 million in 2000 dollars, which is more than the cost of the courthouse restoration in 2000 dollars. c.$2.6 million in 2000 dollars, which is less than the cost of the courthouse restoration in 2000 dollars. d.$2.6 million in 2000 dollars, which is more than the cost of the courthouse restoration in 2000 dollars.

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?