Where are the major differences found between activity-based budgeting and traditional budgeting?
A)in the materials and labour categories
B)in the sales and production budgets
C)in the cash budget
D)in the overhead and selling and administrative categories

Question

Quizplus · Accepted Answer

The major differences between activity-based budgeting and traditional budgeting are found in the overhead and selling and administrative categories. Activity-based budgeting focuses on identifying and allocating costs based on the specific activities that drive those costs, resulting in a more accurate and efficient budget. Traditional budgeting, on the other hand, typically uses historical data and other general assumptions to develop a budget, which may not accurately reflect the true cost drivers of the organization.

Where Are the Major Differences Found Between Activity-Based Budgeting and Traditional