Question

Budgeting that begins with output and then determines the resource necessary to create that output is referred to as:

1) Output budgeting
2) Resource budgeting
3) Activity-based budgeting
4) Zero-based budgeting

Answer 1

Activity-based budgeting is the budgeting approach that begins with output and then determines the resources necessary to create that output.

Step-by-step explanation:

The budgeting approach that begins with output and then determines the resources necessary to create that output is referred to as Activity-based budgeting. This type of budgeting focuses on the specific activities or processes involved in producing a product or service, and allocates resources based on those activities. It helps companies allocate their resources more effectively by identifying the key drivers of costs.