The Objective of Activity-Based Budgeting Is

question 99

Multiple Choice

The objective of activity-based budgeting is

• A)to allow multiple activities to be used as cost drivers rather than just one item such as direct labour hours.
• B)to compute the cost of performing activities.
• C)to refine the budgeting process by assigning indirect costs into activity cost pools.
• D)to classify costs by functional area and assign them to related activities.
• E)to classify costs as to whether they are value added or non-value added.

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