The budgeting system which relies on cost pools and cost drivers, is:

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Activity-based budgeting is the budgeting system that relies on cost pools and cost drivers. It allocates costs based on the activities that drive them instead of traditional methods that allocate costs based on past expenses or revenues. Activity-based budgeting provides more accurate and detailed information to managers for decision-making, and it helps to identify areas for cost reduction and process improvements. Traditional budgeting (B) is based on historical data and often lacks detail, while operational budgeting (C) focuses on day-to-day operations and short-term objectives rather than long-term goals. Option D is incorrect, as operational budgeting is not a system that relies on cost pools and cost drivers.

The Budgeting System Which Relies on Cost Pools and Cost