Which of the Following Statements About Activity-Based Budgeting (ABB) Is

question 13

Multiple Choice

Which of the following statements about activity-based budgeting (ABB) is incorrect?

• A) ABB is based on the estimated cost of activities, while conventional budgeting is based on estimated costs of line items.
• B) ABB starts with estimating the costs of resources, while conventional costing starts with estimating sales.
• C) ABB is generally a more accurate planning tool than conventional budgeting.
• D) ABB focuses on resource consumption rather than resource acquisition.

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