Activity Based Budgeting

question 77

Multiple Choice

Activity based budgeting:

• A) Is the same as traditional budgeting
• B) Separates cost into fixed and variable categories
• C) Uses more cost pools and cost drivers to determine forecasted costs
• D) Is similar to zero-based budgeting

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Definitions:

Effervescence

The process of releasing gas bubbles from a liquid, often seen when opening carbonated drinks.

Specific Gravity

The ratio of the density of a substance to the density of a reference substance, typically water, at a specified temperature.

Volcanic Glass

A natural glass produced by the cooling and solidification of molten lava at a rate too rapid to permit crystallization.

Liquid Water

The liquid phase of H2O, existing at temperatures between 0°C and 100°C under standard atmospheric pressure, and vital for all known forms of life.