Focus on budget cost of all activities necessary to sell and produce market offerings is known as
A. cost based budgeting
B. activity based budgeting
C. production based budgeting
D. raw material budgeting
Answer: Option B
Solution(By Examveda Team)
Focus on budget cost of all activities necessary to sell and produce market offerings is known as activity based budgeting. Activity based budgeting is a budgeting method in which budgets are prepared using Activity Based Costing after considering the overhead costs. In simple words, activity based budgeting is management accounting tool which does not consider the past year's budget to arrive at current year's budget.Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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