Activity Based Budgeting recognizes that all costs can be easily divided into fixed and variable costs.

Question

Quizplus · Accepted Answer

Activity Based Budgeting focuses on the costs of activities necessary for producing a product or service, recognizing that not all costs fit neatly into fixed or variable categories, and it emphasizes the link between activities and costs, making the division between fixed and variable costs more complex.

Activity Based Budgeting Recognizes That All Costs Can Be Easily