A budgeting system in which dollars are allocated based on productivity is called __________.
A) activity-based costing
B) performance budgeting
C) program budgeting
D) zero-based budgeting

Question

Quizplus · Accepted Answer

Performance budgeting is a system in which dollars are allocated based on productivity or past performance. This is different from program budgeting, which allocates funds based on specific programs or activities, and zero-based budgeting, which requires justification for every dollar spent regardless of productivity or past performance. Activity-based costing is a method of assigning costs to specific activities in order to determine the true cost of a product or service.

A Budgeting System in Which Dollars Are Allocated Based on Productivity