Activity-Based Budgeting

question 48

Multiple Choice

Activity-based budgeting

• A)focuses on processes that result in output.
• B)focuses on eliminating nonvalue-added activities.
• C)focuses on the best use of capacity.
• D)All of the above are correct.

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Definitions:

Compensate

To compensate means to provide something, typically money, in recognition of loss, suffering, or damage incurred; a form of recompense.

Foreseeability

A legal principle referring to the predictability or anticipation of risks at the time of a contractual agreement.

Proximate Cause

Legal cause; exists when the connection between an act and an injury is strong enough to justify imposing liability.

Reasonable Care

The degree of caution and concern an ordinarily prudent and rational person would use in similar circumstances.