Activity-based budgeting (ABB) takes the Activity-based costing model (ABC) and reverses the flow of the analysis.

Question

Quizplus · Accepted Answer

Activity-based budgeting (ABB) indeed builds upon the principles of Activity-based costing (ABC) by starting with the expected outputs and then determining the activities necessary to achieve those outputs, effectively reversing the flow of analysis compared to traditional budgeting methods.

Activity-Based Budgeting (ABB) Takes the Activity-Based Costing Model (ABC) and Reverses