Final answer:
The shift toward activity-based costing and just-in-time manufacturing is lessening the need for support department cost allocation by providing more precise cost assignment and reducing inventory expenses.
Step-by-step explanation:
The need for support department cost allocation is virtually being eliminated due to a move toward activity-based costing and just-in-time manufacturing. These modern costing methods are gaining traction as they provide a more accurate cost assignment compared to traditional allocation methods. Activity-based costing assigns costs to activities based on their consumption of resources, and just-in-time manufacturing reduces inventory costs, both helping to streamline and optimize production efficiency.
The need for support department cost allocation is virtually being eliminated due to:
Move toward activity-based costing and just-in-time manufacturing
Cost-benefit perspective in choosing an allocation method
Complexity in determining the extent of support department interaction with production departments
These factors have led to a decreased need for support department cost allocation because they have improved the efficiency and accuracy of cost allocation methods in modern business practices.
Therefore, the correct option is a.move toward activity-based costing and just-in-time manufacturing.