Which one of the following managerial accounting approaches attempts to allocate manufacturing overhead in a more meaningful fashion?
A) Balanced scorecard
B) Just-in-time inventory
C) Activity-based costing
D) Total quality management

Question

Quizplus · Accepted Answer

Activity-based costing is an approach that attempts to allocate manufacturing overhead in a more meaningful fashion by identifying and assigning costs to specific activities that drive the costs, rather than just using a broad-based allocation rate. This provides a more accurate picture of the true costs of products and services, allowing for better decision-making. Balanced scorecard, just-in-time inventory, and total quality management are all different approaches to managerial accounting that focus on different aspects of performance management, such as strategy execution, lean manufacturing, and quality improvement, respectively.

Which One of the Following Managerial Accounting Approaches Attempts to Allocate