Building an Activity-Based Budget Requires

question 56

Multiple Choice

Building an activity-based budget requires

• A) the activities within an organization to be identified.
• B) the demand for each activity's output to be estimated.
• C) the cost of resources required to produce this activity output to be assessed.
• D) All of these.
• E) None of these.

---

Definitions:

Entrepreneurial Ability

The unique set of skills, insights, and attitudes necessary to identify opportunities and mobilize resources effectively to establish and grow a venture.

Passive Resources

Resources that are not actively managed but contribute to production or value through their existence or inherent attributes.

Entrepreneur

An individual who creates and manages a business venture in order to gain profit by taking on financial risks.

Butter Production

The process of making butter from cream or milk by churning, commonly used as a measure in agricultural and economic studies.