For which of the following is a cost formula developed for activity flexible budgeting?
A)each overhead item as a function of direct labour hours
B)each activity as a function of activity drivers
C)each activity as a function of resource drivers
D)each overhead item as a function of resource drivers

Question

Quizplus · Accepted Answer

A cost formula for activity flexible budgeting is developed for each activity as a function of activity drivers. This approach aligns with activity-based costing principles, where costs are attributed to activities based on the extent to which they use resources.

For Which of the Following Is a Cost Formula Developed