Activity-based budgeting is most useful when
A)output is homogeneous.
B)production processes are simple.
C)diverse products are produced.
D)volume levels are stable.

Question

Quizplus · Accepted Answer

Activity-based budgeting is most useful when diverse products are produced because it allows for more accurate budgeting based on specific activity costs associated with each product or process. Homogeneous output and simple production processes may not require such detailed budgeting, while stable volume levels may be better suited for traditional budgeting methods.

Activity-Based Budgeting Is Most Useful When