Which One of the Following Managerial Accounting Approaches Attempts to Allocate

question 32

Multiple Choice

Which one of the following managerial accounting approaches attempts to allocate manufacturing overhead in a more meaningful fashion?

• A)Theory of constraints
• B)Just-in-time inventory
• C)Activity-based costing
• D)Total-quality management

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Definitions:

Profit Margin

A financial metric depicting the percentage of revenue that exceeds the costs of goods sold, showing the profitability of a business.

Net Sales

Company sales revenue post deduction of returns, allowances for imperfections or absences, and discounts.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life to account for declines in value over time.

Plant Assets

Durable physical assets employed in the running of a business, designed for long-term use and not for being sold off.