Asked by Tessa Eddington on May 12, 2024
Verified
Activity-based budgeting is a budget system based on expected activities and their levels for the budget period,which helps management plan for the resources required.
Activity-Based Budgeting
A budgeting method where activities that incur costs in every department of an organization are recorded and their budgets are prepared.
Expected Activities
Forecasted or anticipated actions taken by an individual, group, or organization that aim to achieve certain goals or outcomes.
- Acknowledge the benefits of activity-based budgeting in managing resources effectively.
Verified Answer
MC
marlynne cherutoMay 19, 2024
Final Answer :
True
Explanation :
Activity-based budgeting is a budget system that focuses on identifying and planning for the specific activities and resources required to achieve organizational goals. This approach is different from traditional budgeting methods that simply allocate funds to departments based on historical spending or arbitrary percentages. Instead, activity-based budgeting involves analyzing past performance, forecasting future needs, and setting priorities based on the most efficient and effective use of resources.
Learning Objectives
- Acknowledge the benefits of activity-based budgeting in managing resources effectively.
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