QR Uses an Activity Based Budgeting (ABB) System to Budget

question 12

Multiple Choice

QR uses an activity based budgeting (ABB) system to budget product costs. It manufactures two products, product Q and product R. The budget details for these two products for the forthcoming period are as follows: 11ec37eb_8ba8_cbc1_97b9_9be13a65b02c__00 The total budgeted cost of setting up the machines is $74,400. Select TWO potential benefits of using an activity based budgeting system.

• A) Activity based budgeting allows the ranking of activities and the determination of how limited resources should be allocated across competing activities.
• B) Activity based budgeting provides a clear framework for understanding the link between turnover and the level of activity.
• C) Activity based budgeting is useful for the review of quality systems utilization.
• D) Activity based budgeting allows the identification of value added and non-value added activity and ensures that any budget cuts are made to non-value added activities.

---

Definitions:

Eating Fruit

The act of consuming fruits, which are parts of flowering plants containing seeds, often high in vitamins, minerals, and fiber.

Memory Skills

The cognitive abilities involved in the encoding, storage, and retrieval of information over short or long periods.

Sensory Skills

The abilities related to the detection, identification, and interpretation of sensory information from the environment.

Cooking Food

The process of preparing food by combining, mixing, and heating ingredients, which can increase digestibility and reduce foodborne pathogens.