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E1-18 A method used to allocate overhead

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E1-18 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 fi nancial and nonfi nancial measures in an integrated fashion.
(b) ______ The group of activities associated with providing a product or 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.

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