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

Question

Quizplus · Accepted Answer

Activity-based budgeting is used for identifying costs related to both production and support activities. It helps in allocating resources to activities that support overall organizational goals. Therefore, both production and support activities must be identified in activity-based budgeting.

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