The major differences between activity-based budgeting and traditional budgeting are found in
A)the materials and labor categories.
B)the sales and production budgets.
C)the cash budget.
D)the overhead and selling and administrative categories.
E)none of these

Question

Quizplus · Accepted Answer

Activity-based budgeting differs from traditional budgeting in the way overhead and selling and administrative categories are handled. In traditional budgeting, these categories are often based on fixed percentages or historical data. In activity-based budgeting, these categories are based on the actual activities that drive costs, allowing for more accurate and targeted budgeting. The other options do not accurately capture the main differences between the two budgeting approaches.

The Major Differences Between Activity-Based Budgeting and Traditional Budgeting Are