Question: Activity - based costing: is a powerful tool for gathering competitive intelligence on a rival company s value chain, enabling analysts to classify a rival

Activity-based costing:
is a powerful tool for gathering competitive intelligence on a rival companys value chain, enabling analysts to classify a rivals primary and support activities.
involves determining which value chain activities represent primary activities and which represent support activities.
involves the creation of an accounting system that assigns a companys expenses to whichever activity in a companys value chain is responsible for creating the cost.
applies benchmarking techniques to develop cost estimates for the value chain activities of each major rival.

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