A Company That Uses Activity-Based Budgeting Performs the Following: (1)

question 46

Multiple Choice

A company that uses activity-based budgeting performs the following: (1) plans activities for the budget period; (2) forecasts the demand for products and services as well as the customers to be served; (3) budgets the resources necessary to carry out activities. Which of the following denotes the proper order of the preceding activities?

• A)1-2-3.
• B)2-1-3.
• C)2-3-1.
• D)3-1-2.
• E)3-2-1.

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Definitions:

Land Resources

Natural resources encompassing geographical territories and the natural materials available within them, such as water, minerals, and fertile land used for agriculture.

Money

Anything that is generally accepted in exchange for goods and services.

Capital

Assets used for the production of goods and services, including machinery, buildings, and equipment.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating scarce resources to satisfy their unlimited wants.