Which of the following is typically considered fixed under traditional budgeting processes, but considered variable under activity based budgeting:

Question

Quizplus · Accepted Answer

In activity-based budgeting, costs like setups, inspections, purchasing, material handling, designing, and quality control are considered variable because they are directly tied to the level of activities or transactions. Traditional budgeting often treats these costs as fixed overheads.

Which of the Following Is Typically Considered Fixed Under Traditional