The major differences between functional and activity-based budgeting are found within which of the following categories?
A) overhead
B) selling
C) administration
D) All of these.
E) None of these.

Question

Quizplus · Accepted Answer

Both functional and activity-based budgeting involve the allocation of costs and resources to different departments or activities. Therefore, the major differences between the two are found within all of these categories, including overhead, selling, and administration. Functional budgeting typically assigns costs based on traditional departmental lines, while activity-based budgeting assigns costs based on specific activities or processes that generate those costs. This can lead to different cost allocations and resource priorities between the two methods.

The Major Differences Between Functional and Activity-Based Budgeting Are Found