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

question 40

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) None of these.

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Definitions:

Operating System

The software that manages the hardware and software resources of a computer, providing a platform for applications.

Consent Decree

A legal agreement that resolves a dispute between two parties without an admission of guilt and is approved by a judge.

Market Power

The ability of a firm or group of firms to influence or control prices and total market output.

AstraZeneca

A global, science-led biopharmaceutical company that focuses on the discovery, development, and commercialization of prescription medicines.