Activity-based budgeting provides better planning because
A)it incorporates change by understanding processes and drivers.
B)it incorporates change by assuming production relationships to be the same.
C)it incorporates change by making inflationary adjustments.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Activity-based budgeting takes into account the underlying processes that drive costs and revenue, allowing for more accurate forecasting and planning. It is focused on understanding and managing change rather than assuming that production relationships will remain constant or simply making inflationary adjustments. Therefore, only option A is correct.

Activity-Based Budgeting Provides Better Planning Because