Activity-Based Costing Is Used to

Multiple Choice

Activity-based costing is used to

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 make-up of a company's internal cost structure.
D) determine the costs of each strategic action a company initiates.
E) None of these accurately describes what activity-based costing is about.