Chapter 1, Problem 1.18E

The following is a list of terms related to managerial accounting practices.

1. Activity-based costing.

2. Just-in-time inventory.

3. Balanced scorecard.

4. Value chain.

Instructions

Match each of the terms with the statement below that best describes the term.

(a) _____ A performance-measurement technique that attempts to consider and evaluate all aspects of performance using financial and nonfinancial measures in an integrated fashion.

(b) _____ The group of activities associated with providing .a product or performing .a service.

(c) _____ An approach used to reduce the cost associated with handling and holding inventory by reducing the amount of inventory on hand.

(d) _____ A method used to allocate overhead to products based on each product’s use of the activities that cause the incurrence of the overhead cost.

Identify various managerial accounting practices.

(LO 4), C