Which of the Following Statements Is True About Activity-Based Budgeting

question 33

Multiple Choice

Which of the following statements is true about activity-based budgeting?

• A) activity-based budgeting estimates total costs more accurately than cost-based budgeting
• B) activity-based budgeting provides more detailed information than cost-based budgeting
• C) activity-based budgeting is cheaper than cost-based budgeting
• D) activity-based budgeting is simpler to implement than cost-based budgeting

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Definitions:

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value to an organization or country.

Compensating Differentials

Wage differences among jobs that reflect the desirability of the job or the cost associated with undesirable job attributes.

Monetary Compensation

The financial payment given to an employee for their services or to an individual as a settlement.

Human Capital Theory

An economic perspective that views individuals' skills, knowledge, and experience as productive assets that can improve their earnings and contribute to a country's economic growth.