Activity-based budgeting makes it easier to ________.
A) determine a rolling budget
B) prepare pro forma financial statements
C) determine how to reduce costs
D) execute a financial budget

Question

Quizplus · Accepted Answer

Activity-based budgeting involves identifying and grouping activities that consume resources and assigning costs to those activities. This helps in creating a better understanding of the organization's spending patterns and finding ways to reduce costs. Therefore, the best choice is C, which states that activity-based budgeting makes it easier to determine how to reduce costs.

Activity-Based Budgeting Makes It Easier to ________