Which one of the following budgets would be prepared using activity based budgeting techniques?
A) direct materials purchase budget
B) revenues budget
C) manufacturing overhead cost budget
D) production budget

Question

Quizplus · Accepted Answer

Activity based budgeting techniques focus on how activities drive costs, so the manufacturing overhead cost budget is best prepared using this approach. The other budgets listed are more based on direct inputs and outputs, such as materials or production quantities, which do not necessarily require activity-based budgeting techniques.

Which One of the Following Budgets Would Be Prepared Using