$1\mathrm{.}4$ Managerial Accounting Today

Basic Cloth manufactures t$-$shirts, long$-$sleeve shirts, and sweatshirts. T$-$shirts use the sewing machines for $60\%$ of the machine hours, long$-$sleeve shirts use the sewing machines for $15\%$ of the machine hours, and sweatshirts use the sewing machines for $25\%$ of the machine hours. Therefore, overhead costs are assigned to the appropriate products based on machine hour percentages. This is known as

corporate social responsibility.

activity$-$based costing.

enterprise resource planning.

the theory of constraints.