Which of the following is characteristic of activity-based budgeting?
A)It builds a budget for each function.
B)It identifies only the overhead activity.
C)It classifies costs as variable or fixed with respect to the activity output measure.
D)It creates a budget after the fact.

Question

Quizplus · Accepted Answer

Activity-based budgeting focuses on the costs associated with activities and classifies them as variable or fixed with respect to the activity output measure, rather than building a budget based on functions or only identifying overhead activities. It is a forward-looking process, not one that creates a budget after the fact.

Which of the Following Is Characteristic of Activity-Based Budgeting