Activity-Based Budgeting

question 69

Multiple Choice

Activity-based budgeting

• A)is a more powerful planning and control tool than a functional-based budget system.
• B)starts with sales and production budgets similar to a functional-based budget system.
• C)is simpler to construct than a functional-based budget system.
• D)Both a and b above are correct.

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Definitions:

Expectations

Anticipated outcomes or behaviors in a given situation.

Behavior

The actions or reactions of an individual or group, often in response to their environment.

Halo Effect

A cognitive bias where an individual's overall impression of a person influences how they feel and think about that person's character.

Characteristic

A distinguishing quality, trait, or feature of a person, thing, or category.