Which of the Following Statements Is True About Activity-Based Budgeting

question 33

Multiple Choice

Which of the following statements is true about activity-based budgeting?

• A) activity-based budgeting estimates total costs more accurately than cost-based budgeting
• B) activity-based budgeting provides more detailed information than cost-based budgeting
• C) activity-based budgeting is cheaper than cost-based budgeting
• D) activity-based budgeting is simpler to implement than cost-based budgeting

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Definitions:

Indifference Curves

In consumer theory, a graph showing combinations of goods or services among which a consumer is indifferent, reflecting preferences.

Optimum

The condition or outcome that is most favorable or efficient under the given circumstances.

Budget Constraint

The limitation on the consumption bundles that a consumer can afford based on their income and the prices of goods and services.

Indifference Curves

Graphical representations in economics showing different combinations of goods that give a consumer equal satisfaction and utility.