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:

Sequential Processing

A method of processing information in a linear, ordered manner, where one step follows another in a sequence.

Parallel Processing

Parallel processing is the ability of the brain to simultaneously process incoming stimuli of differing quality. It's a part of the human information processing system that allows for complex multitasking.

Dual Processing

The principle that our minds operate on two levels simultaneously - a fast, automatic, intuitive level, and a slower, more deliberate, rational level.

Sleep Spindles

Brief bursts of brain activity characterized by rapid oscillations, seen in the stage 2 of non-REM sleep, thought to be involved in memory consolidation.