Activity-based cost accounting aims at:
A. making cross-company comparisons of the costs of each value chain activity.
B. dividing all company expenses into two categories: activities whose costs are variable and activities whose costs are fixed.
C. determining the costs of each activity comprising a company's value chain by establishing expense categories for specific value chain activities and assigning costs to the activity responsible for creating the cost.
D. determining the costs of each strategic action a company initiates.
E. None of these.
Answer: determining the costs of each activity comprising a company's value chain by establishing expense categories for specific value chain activities and assigning costs to the activity responsible for creating the cost.