A budget system based on expected activities and their levels that enables management to plan for resources required to perform the activities is:
A) Cash budgeting.
B) Master budgeting.
C) Traditional budgeting.
D) Activity-based budgeting.
E) Management budgeting.

Question

Quizplus · Accepted Answer

Activity-based budgeting is a budget system that is based on expected activities and their levels. This system enables management to plan for the resources required to perform these activities efficiently. It helps to allocate resources to activities that create the most value for the organization, thereby optimizing the use of resources. Therefore, Activity-based budgeting is the best choice for the given scenario.

A Budget System Based on Expected Activities and Their Levels