Activity-Based Budgets

question 128

Multiple Choice

Activity-based budgets

• A)use the knowledge of cost behavior to split the functional-based line items into fixed and variable components.
• B)start with output and then determine the resources necessary to create that output.
• C)rely on the use of functional-based line items.
• D)work in environments where the products are homogenous and the production process is simple.

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Definitions:

Expanding Store

An expanding store refers to a retail business that is increasing its physical size or number of locations to accommodate more customers or provide a wider range of products and services.

Optimize Growth

Refers to strategies or approaches aimed at maximizing the rate of growth of an economy, organization, or specific area of development.

Annual Profit

The total earnings or surplus of an organization, company, or individual after all expenses and costs are deducted from total revenues over one year.

Strategy Cooperation

A cooperative approach in strategic decision-making where entities align their strategies for mutual benefit.