Which One of the Following Managerial Accounting Approaches Attempts to Allocate

question 54

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:

Direct Labour Cost

The wages and benefits paid to workers who are directly involved in the production of goods or services.

Manufacturing Overhead Cost

All indirect costs related to the manufacturing process, including utilities, depreciation, and maintenance of equipment and facilities.

Manufacturing Overhead

Expenses related to the manufacturing process that are not directly tied to specific products, such as salaries of supervisory staff and factory maintenance.

Direct Materials

Materials that are traceable to the production of specific goods or services and included in the cost of those goods or services.