When an Organisation Implements Activity-Based Budgeting, Managers Must Identify Activities

question 11

Multiple Choice

When an organisation implements activity-based budgeting, managers must identify activities for:

• A) Production activities
• B) Support activities
• C) Both production activities and support activities
• D) Neither production activities nor support activities, as long as cost drivers are clearly specified

---

Definitions:

Market Value

The contemporary selling or buying price of a service or asset in the market.

Maturity Risk

The risk associated with the uncertainty of returns due to changes in interest rates as an investment approaches its maturity date.

Interest Rate Changes

Variations in the cost of borrowing money or the rate paid on savings, which can affect economic activity.

Market Interest Rates

The prevailing rates at which borrowers can obtain loans and lenders can earn interest in the financial markets, influenced by monetary policy, market demand, and economic conditions.