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Which of the following is most true of relative cost analysis? Relative cost analysis cannot be productive without extremely precise cost estimates and inside competitor

Which of the following is most true of relative cost analysis? Relative cost analysis cannot be productive without extremely precise cost estimates and inside competitor data. It is *not* helpful for thinking about how a rival is likely to respond to competitive conditions. Successful relative cost analyses must be done by outside consultants, who act like hired detectives. It is interested in estimating rivals' *total* costs and will therefore have larger estimates for larger competitors. It is interested in understanding which choices drive rivals' average costs per unit of product (or service) sold

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