What Is Characteristic of Activity-Based Budgets

question 103

Multiple Choice

What is characteristic of activity-based budgets?

• A)They use the knowledge of cost behaviour to split the functional-based line items into fixed and variable components.
• B)They start with output and then determine the resources necessary to create that output.
• C)They rely on the use of functional-based line items.
• D)They work in environments where the products are homogenous and the production process is simple.

---

Definitions:

Naturalistic Observation

A research method where subjects are observed in their natural environment without any manipulation by the researcher, to ensure behavior is observed naturally and authentically.

Postal Clerks

Individuals who work in post offices, responsible for handling mail, processing customer transactions, and providing postal service assistance.

Pace of Life

The speed at which life activities are conducted, which can vary significantly between different cultures or societies.

Physical Attractiveness

The degree to which a person's physical features are considered aesthetically pleasing or beautiful by others.