Which task is NOT required when building an activity-based budget?
A) identifying the activities within an organization
B) estimating the demand for each activity's output
C) using a single unit-based driver such as direct labour
D) assessing the cost of resources required to produce this activity output

Question

Quizplus · Accepted Answer

Using a single unit-based driver such as direct labour is not part of the activity-based budgeting process. Activity-based budgeting involves identifying the activities within an organization, estimating the demand for each activity's output, and assessing the cost of resources required to produce this activity output.

Which Task Is NOT Required When Building an Activity-Based Budget