Where Are the Major Differences Found Between Activity-Based Budgeting and Traditional

question 72

Multiple Choice

Where are the major differences found between activity-based budgeting and traditional budgeting?

• A) in the cash budget
• B) in the sales and production budgets
• C) in the materials and labour categories
• D) in the overhead and selling and administrative categories

---

Definitions:

Cafeteria-Style Plans

Flexible benefit plans allowing employees to choose from a variety of pre-tax benefits options to create a package tailored to their personal needs and preferences.

Flexible Spending Accounts

Tax-advantaged accounts that allow employees to save pre-tax dollars for eligible health care and dependent care expenses.

Defined-Benefit Plans

A type of pension plan where an employer promises a specified pension payment upon retirement, which is determined based on the employee’s earnings history, tenure of service, and age.

Workers' Compensation Insurance

Insurance that provides financial benefits and medical care to employees who are injured or become ill as a direct result of their job.