Activity-based budgeting is a budget system based on expected activities and their activity levels, which helps management plan for the resources required.

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Activity-based budgeting is a budget system that is based on expected activities and their activity levels, which helps management plan for the resources required. This system is particularly useful for organizations where different activities have different cost drivers and, therefore, require different levels of resources. By using activity-based budgeting, management can allocate resources in the most efficient and effective way possible.

Activity-Based Budgeting Is a Budget System Based on Expected Activities