A budgeting method that assigns costs first to activities and then to projects based on each project's use of resources is:
A)Activity-based budgeting.
B)Zero-based budgeting.
C)Top-down budgeting.
D)Bottom-up budgeting.

Question

Quizplus · Accepted Answer

Activity-based budgeting first identifies the specific activities that incur costs, then assigns those costs to each project based on the project's use of those activities. This allows for a more accurate allocation of resources and helps identify areas where cost reductions may be possible. Zero-based, top-down, and bottom-up budgeting methods do not necessarily focus on activities as the primary cost driver.

A Budgeting Method That Assigns Costs First to Activities and Then