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:

Long-term Problems

Issues or difficulties that persist over an extended period of time, often with significant impacts on an individual’s life.

Family Therapist

A psychotherapist specializing in treating family dynamics and relationships, often addressing patterns of behavior and communication issues within the family unit.

Psychological Disorders

Mental health conditions marked by significant disturbances in an individual's thoughts, feelings, or behaviors, affecting their ability to function in daily life.

Family Unit

A social group in society typically consisting of parents and their children living together.