Activity-based budgeting
A) builds a budget for each function.
B) identifies only the overhead activity.
C) classifies costs as variable or fixed with respect to the activity output measure.
D) All of these.
E) None of these.

Question

Quizplus · Accepted Answer

Activity-based budgeting focuses on identifying the costs associated with activities and classifying them as variable or fixed with respect to the activity output measure, rather than building a budget for each function or identifying only overhead activity.

Activity-Based Budgeting