Which of the following has contributed most to governments' increased interest in activity-based accounting?
A) GASB standards.
B) Implementation of innovative management approaches (such as TQM and SEA measures) in response to public demand for greater accountability and productivity.
C) Increased demand for high profile management tools to bolster the image of government.
D) The enactment of Sarbanes-Oxley legislation.

Question

Quizplus · Accepted Answer

Implementation of innovative management approaches in response to public demand for greater accountability and productivity has been the biggest contributor to governments' increased interest in activity-based accounting. This approach helps governments to quantify the cost of delivering services and to allocate resources more efficiently. GASB standards and the enactment of Sarbanes-Oxley legislation are more applicable to the private sector, while the increased demand for management tools to bolster government image is more of a secondary factor.

Which of the Following Has Contributed Most to Governments' Increased