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

Question

Quizplus · Accepted Answer

Classifying activities as value-added or non-value-added is not a step in building an activity-based budget. The three main steps involve identifying activities, estimating the demand for each activity's output, and estimating the cost of producing the output demanded by each activity. Classifying activities into value-added or non-value-added is more related to activity-based costing and process improvement methodologies.

Which of the Following Is NOT One of the Three