The principles of activity-based costing can be applied to the budgeting process.

Question

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Activity-based costing (ABC) focuses on identifying activities within an organization and assigning costs to those activities, which can then be used to more accurately allocate costs to products or services. This same principle can be applied to the budgeting process, where costs are assigned to specific activities and then used to create a more detailed and accurate budget. This allows for better planning, decision-making, and cost control.

The Principles of Activity-Based Costing Can Be Applied to the Budgeting