Activity-based budgeting (ABB)focuses on budgeting the cost of activities necessary to produce and sell products and services.

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Activity-based budgeting (ABB) is a method of budgeting that focuses on identifying the cost of activities necessary to produce and sell products and services. This approach differs from traditional budgeting techniques that allocate costs based on broad categories or historical data. ABB is designed to help organizations better understand the cost of different activities and make more informed decisions about resource allocation.

Activity-Based Budgeting (ABB)focuses on Budgeting the Cost of Activities Necessary