Which is NOT one of the four steps needed to build an activity-based budget?
A)Determine output level.
B)Determine the activities and their drivers needed to produce output.
C)Estimate the demand for each activity to produce the output.
D)Estimate the committed capacity.

Question

Quizplus · Accepted Answer

The four steps to build an activity-based budget are:
1. Determine output level.
2. Determine the activities and their drivers needed to produce output.
3. Estimate the demand for each activity to produce the output.
4. Determine the resources required and estimate the costs associated with them. 
Estimating the committed capacity is not one of these steps.

Which Is NOT One of the Four Steps Needed to Build