When is activity-based budgeting most useful?
A)when output is homogeneous
B)when production processes are simple
C)when diverse products are produced
D)when volume levels are stable

Question

Quizplus · Accepted Answer

Activity-based budgeting is most useful when diverse products are produced because it allocates costs based on the activities required to produce each product. This method ensures that each product is accurately represented in the budget, rather than assuming all products require the same amount of resources. This allows for a more accurate budget and better decision-making.

When Is Activity-Based Budgeting Most Useful