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.

---

Definitions:

Factor Analysis

A statistical method used to identify underlying variables, or factors, that explain the pattern of correlations within a set of observed variables.

Chronological Age

The actual age of an individual or object, measured in years from the date of birth or inception.

Heritability

The proportion of variation among individuals that can be attributed to genetic factors.

Single Intelligence

The theory that intellectual ability is a general cognitive capacity that can be measured and numerically expressed.