Discuss how you would use Activity-Based Costing and Master Budgeting  in managerial decisions.

ABC is a method of managerial accounting that analyzes the costs involved in producing products or services. In this approach, costs are assigned to certain activities to determine their exact impact on the products or services. Managers can identify improvement areas and take more informed decisions on pricing and production by analyzing this data.

ABC is also a great tool to use in conjunction with master-budgeting when setting performance targets. Budgeting involves dividing costs up into different categories, such as overhead, labor, and materials. ABC and master budgeting techniques can be used to accurately estimate costs while also providing a framework for tracking progress.

By combining master budgeting with activity-based costs, businesses can optimize both their financial and operational operations. This information allows managers to make informed decisions about resource allocation and pricing.