What is Activity based budgeting and briefly describe how it could bring improvements to the budgeting process of an organization

Activity based budgeting(ABB) is a method of budgeting which is based on an activity framework,utilizing cost driver data rather than the more traditional functional cost centres and overhead absorption ratios.

ABB involves defining the activities that underlies the financial figures in each function and using the level of activity to decide how much resource [...]

December 5th,2009 | Tags:ABB,activity based budgeting | Category:Budgeting | Leave a comment