Refer to financial statements of Best Buy (BestBuy.com) and Circuit City (CircuitCity.com) to answer the following.

Required
1. Identify at least two activities at Best Buy and at Circuit City that cause costs to be incurred. Do you believe these companies should be concerned about controlling costs of the activities you identified? Explain.
2. Would you classify Best Buy and Circuit City as service, merchandising, or manufacturing companies? Explain.
3. Is activity-based costing useful for companies such as Best Buy and Circuit City? Explain.