Question: Suppose that AT&T used benchmarking to compare the activity-based costs among its various divisions. As part of its benchmarking efforts, AT&T compared the activity cost

Suppose that AT&T used benchmarking to compare the activity-based costs among its various divisions.

As part of its benchmarking efforts, AT&T compared the activity cost per driver unit for similar

activities and cost per customer for its billing departments in various geographic regions. For example,

AT&T compared the costs at the Youngstown area billing department with the similar costs in the

Los Angeles area. Are these meaningful comparisons? Why or why not?

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