Activity-Based Costing Is Used to

question 103

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.

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Definitions:

Mere Exposure Effect

The psychological phenomenon whereby people tend to develop a preference for things merely because they are familiar with them.

Stimulus

Anything that can provoke a response or reaction from a biological organism or a system.

Conscious Awareness

The mental state of being fully engaged and aware of the present moment, including thoughts, feelings, and external environment.

Strongest

The most powerful, forceful, or capable in a particular group, area, or context.