Read the scenario below, and address the subsequent requirements.

You and your friends go to a restaurant as a group. At the end of the meal, the question arises of how the bill for the group should be divided. One alternative is to figure out the cost of what each individual consumed and divide up the bill accordingly. Another alternative is to split the bill equally among individuals.

Required:

Share your thoughts about the scenario. Which system for dividing the bill is more equitable? Which system is easier to use? How does this issue relate to the material covered in the Activity Based Costing chapter (hint: consider how ABC contrasts with Traditional Costing methods)?