Refer to financial statements of Polaris (Polaris.com) and Arctic Cat (arcticcat.com) to answer the following.
Required
1. Identify at least two activities at Polaris and at Arctic Cat 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 Polaris and Arctic Cat as service, merchandising, or manufacturing companies? Explain.
3. Is activity-based costing useful for companies such as Polaris and Arctic Cat? Explain.