________ gives managers information about the costs of making and selling diverse outputs,rooted in activities.
A)Financial accounting
B)Activity-based costing
C)Management accounting
D)Inventory control

Question

Quizplus · Accepted Answer

Activity-based costing is a method of management accounting that identifies activities in an organization and assigns the cost of each activity to produce more accurate information about product and service costs. This helps managers to determine the profitability of certain outputs and make decisions about pricing, production and sales strategies. Financial accounting focuses on the general reporting of financial information for external stakeholders, while management accounting is concerned with providing information for internal decision making. Inventory control is the process of managing and tracking inventory levels, but it is not directly related to determining costs of making and selling outputs.

________ Gives Managers Information About the Costs of Making and Selling