Final answer:
The increased focus on costing activities in the value chain and analyzing supplier and customer costs has led to the prominence of EDI and supply chain management, spurred by technological advancements and globalization. option b.
Step-by-step explanation:
The emergence of new emphasis on costing activities in the value chain and the determination of costs related to different suppliers and customers has been strongly associated with EDI (Electronic Data Interchange) and supply chain management.
These advancements stem from the significant shifts in how markets are defined, primarily due to the advent of technology and globalization. With the improvement of communication technologies like the internet, markets have expanded beyond local reach, allowing business-to-business (B2B) interactions to occur on a global scale.
This global connectivity also complements the theory of comparative advantage, as it allows businesses to benefit from specialization and economies of scale.
Furthermore, this transition in market dynamics necessitates an analysis of various costs, such as fixed and variable costs, to determine the most profitable strategies for production and pricing. The long-run production analysis includes studying such cost structures in depth.
EDI and modern supply chain management techniques therefore enable firms to efficiently interact with a greater number of suppliers and customers around the world, intensifying competition and driving innovations in cost analysis and management.
So option b is correct.