When an organisation implements activity-based budgeting, managers must identify activities for:
A) Production activities
B) Support activities
C) Both production activities and support activities
D) Neither production activities nor support activities, as long as cost drivers are clearly specified

Question

Quizplus · Accepted Answer

Activity-based budgeting requires managers to identify activities for both production and support activities. This approach ensures that all aspects of the organization's operations are considered in the budgeting process, leading to more accurate and effective allocation of resources.

When an Organisation Implements Activity-Based Budgeting, Managers Must Identify Activities