Activity-based costing and bottom-up budgeting share the step of:
A)Identifying cost drivers associated with each activity.
B)Identifying activities that consume resources and assigning costs to them.
C)Assigning costs to projects by multiplying the cost driver rate times the volume of units.
D)Tending to overestimate project costs due to the lack of involvement by top management.

Question

Quizplus · Accepted Answer

Both activity-based costing and bottom-up budgeting involve identifying the activities that consume resources and then assigning costs to those activities. This step is fundamental in accurately allocating costs based on actual resource consumption.

Activity-Based Costing and Bottom-Up Budgeting Share the Step Of