Using activity-based budgeting, assessing variances according to fixed and variable components provides insight into the source of variances.

Question

Quizplus · Accepted Answer

Activity-based budgeting focuses on the relationship between activities and costs, identifying fixed and variable components. By assessing variances according to these components, it provides insight into the source of variances and enables better decision-making.

Using Activity-Based Budgeting, Assessing Variances According to Fixed and Variable