In budgeting at the activity level, the cost behavior of each activity is defined with respect to
A) direct labor hours.
B) machine hours.
C) the activity output measure.
D) the activity's resource driver.
E) None of these.

Question

Quizplus · Accepted Answer

In activity-based budgeting, the cost behavior of each activity is defined with respect to the activity output measure, which reflects the consumption of resources by the activity.

In Budgeting at the Activity Level, the Cost Behavior of Each