Which of the following statements is true about activity-based budgeting?
A) activity-based budgeting estimates total costs more accurately than cost-based budgeting
B) activity-based budgeting provides more detailed information than cost-based budgeting
C) activity-based budgeting is cheaper than cost-based budgeting
D) activity-based budgeting is simpler to implement than cost-based budgeting

Question

Quizplus · Accepted Answer

Activity-based budgeting provides more detailed information than cost-based budgeting. This is because activity-based budgeting focuses on identifying and forecasting costs of specific activities, while cost-based budgeting simply allocates costs based on past expenses or percentage of revenue. Activity-based budgeting also allows for better cost management and identification of areas where costs can be reduced or eliminated. However, activity-based budgeting may be more complex and time-consuming to implement compared to cost-based budgeting.

Which of the Following Statements Is True About Activity-Based Budgeting