What is NOT one of the three steps in building an activity-based budget?
A) identifying activities
B) estimating the demand for each activity's output
C) classifying activities as value-added or non-value-added
D) estimating the cost of producing the output demanded by each activity

Question

Quizplus · Accepted Answer

The three steps in building an activity-based budget are identifying activities, estimating the demand for each activity's output, and estimating the cost of producing the output demanded by each activity. Classifying activities as value-added or non-value-added is a useful step in activity analysis, but it is not one of the steps specifically related to building an activity-based budget.

What Is NOT One of the Three Steps in Building