University of PhoenixACC/497Activity-based costingActivity-based costing determines over head costs associated with an individual product. It is an accounting method used by businesses to allocate direct overhead costs to a specific product in enables them to make decisions on which goods, services, and raw materials increase the corporation's profits and losses. It enables each departmental manager to form an understanding of their expenses and it helps them allocate their annual budgets for future years. When Activity-Based Costing is used over a long period of time it is very effective (Weygant, Kimmel, & Kieso, 2007).
(d) Activity-based costing 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.
Just-in-time inventoryJust-In-Time Inventory can lower inventory costs by making the product as it is ordered therefore reducing inventory storage and costs. Dell made Just-In-Time Inventory a household name they develop and manufacture their computers upon customer's personal orders to their computer specifications.
Dell has perfect the JIT system and reduced their inventories to virtually zero. The JIT system improves a firm's manufacturing process and its quality of products, the lines efficiency and the products profitability (Weygant, Kimmel, & Kieso, 2007).
(c) Just-In-Time Inventory an approach used to reduce the cost associated with handling and holding inventory by reducing the amount of inventory on hand.
Balanced scorecardAccording to TraningMag (2008), "The Balance Scorecard was developed by Doctor's Robert Kaplan and David Norton from Harvard Business School." It was developed as a performance measurement approach that utilizes both non-financial performance and financial measures to give management an impartial view of the firm's performance (Weygant, Kimmel, & Kieso, 2007). The Balance scorecard is a planned management system that is utilized in all types of business including government, and nonprofit organizations worldwide...