The focus on budget cost of all the activities necessary to sell and produce market offerings is known as _________?
Correct answer: B. activity based budgeting
- A. cost based budgeting
- B. activity based budgeting
- C. production based budgeting
- D. raw material budgeting
Explanation
Activity-based budgeting estimates the costs of activities required to produce and sell offerings, using activities and their cost drivers as the basis. It is broader than budgeting only production or raw materials.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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