Unlike traditional budgets that are focused on resources consumed by a company or cost center, activity-based budgeting (ABB) places emphasis on:
A) Traceable direct costs.
B) The work that the resources will accomplish for the company.
C) Standard costs and variances.
D) Best-in-class benchmarks.

Question

Quizplus · Accepted Answer

Activity-based budgeting (ABB) focuses on the work or activities that resources will accomplish for the company, rather than just the resources consumed or costs. This approach aims to link the expenditure of resources to the activities and services provided, allowing for more accurate and efficient budgeting.

Unlike Traditional Budgets That Are Focused on Resources Consumed by a Company