Management judgment and production volume are the two most appropriate factors for budgeting manufacturing overhead expenses.
What is Management judgment ?
The phrase "management judgment" may seem to have a wide range of applications, but in reality, it mostly refers to the managerial decision-making process or a manager's capacity for using judgment to address issues.
Managers are required to make decisions that might range in importance and impact from insignificant to paradigm-shifting as leaders of the company. Using a systematic decision-making process and being aware of what influences decisions is a managerial judgment approach that upholds an efficient, fair, and impartial sense of judgment.
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