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Activity-Based Costing Is Used to Evaluate a Company's Cost Competitiveness

Question 64

Multiple Choice

Activity-based costing is used to evaluate a company's cost competitiveness and ________


A) determine whether the value chains of rival companies are similar or different.
B) benchmark the costs of primary value chain activities against the costs of the support value chain activities.
C) determine the costs of each primary and support activity comprising a company's value chain and thereby reveal the nature and makeup of a company's internal cost structure.
D) determine the costs of each strategic action a company initiates.
E) analyze the costs of each primary activity.

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