Activity-Based Budgeting Is Most Useful When

question 64

Multiple Choice

Activity-based budgeting is most useful when

• A)output is homogeneous.
• B)production processes are simple.
• C)diverse products are produced.
• D)volume levels are stable.

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Definitions:

Insource

The practice of performing a business function or task within a company, instead of contracting it out to a third party.

Cross-Functional

Pertaining to a process, project, or team that involves and utilizes the expertise of members from different departments or areas of discipline.

Hybrid Supply Structures

Supply chain models that incorporate a mix of in-house and outsourced activities to optimize efficiency and flexibility.

Decentralized

Refers to the distribution of functions, powers, people, or organizations away from a central location or authority.