A Significant Advantage of Using Either an Activity-Based Budgeting (ABB)

question 32

Multiple Choice

A significant advantage of using either an activity-based budgeting (ABB) or a time-driven activity-based budgeting (TDABB) system is:

• A) Reduction in the cost of developing budget amounts.
• B) Estimation of the cost of unused capacity, as a by-product of the budgeting process.
• C) Increased levels of "budgetary slack," which has a positive influence on motivation.
• D) Elimination of the need to generate a sales forecast for the upcoming period.
• E) The incorporation of continuous-improvement standards within the budgets.

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Definitions:

Precambrian

The long span of time before the Phanerozoic Eon, making up around 88% of Earth's history, marked by the formation of the earth and early life forms.

Geologic Timescale

A system of chronological dating that relates geological strata to time, used by geologists, paleontologists, and other Earth scientists to describe the timing and relationships of events in geologic history.

Ecosystems

Communities of living organisms and their physical environment interacting as an integrated system.

Clean Water

Water that is free of pollutants and contaminants, making it safe for drinking, recreation, and ecosystem health.