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.