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.
Answer: 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.