In an activity-based budgeting system, managers develop budgets for each:
A) Cost pool
B) General ledger account
C) Cost driver
D) Activity

Question

Quizplus · Accepted Answer

In an activity-based budgeting system, the budgets are developed for each activity. This is because the focus is on identifying and managing the cost drivers (or activities) that consume the organization's resources, rather than just focusing on general ledger accounts or cost pools. Therefore, choice D is the best answer.

In an Activity-Based Budgeting System, Managers Develop Budgets for Each