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

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Activity-based budgeting is a budgeting approach that focuses on identifying the activities required to produce and sell products and services and determining the cost of each activity. This allows for a more accurate allocation of resources and helps to identify areas for cost reduction and optimization.

Activity-Based Budgeting Focuses on the Budgeted Cost of the Activities