The use of activity-based budgeting is growing because of ________.
A) the increased use of activity-based costing
B) the increased use of kaizen costing
C) increases in work-in-process inventory
D) increases in direct materials inventory

Question

Quizplus · Accepted Answer

Activity-based budgeting is a more accurate way of budgeting because it is based on the actual activities performed and their costs, rather than just estimating costs based on past data. Therefore, as more companies implement activity-based costing, they also start using activity-based budgeting to make better-informed decisions.

The Use of Activity-Based Budgeting Is Growing Because of ________