Final answer:
Activity-based budgeting is True to provide managers with additional insights for managing future costs. This budgeting method helps identify more cost-effective methods and improves resource allocation for better cost control and resource utilization.
Step-by-step explanation:
The statement that activity-based budgeting gives managers additional insight into ways to better manage future costs is True. Activity-based budgeting is a detailed approach that allows managers to understand the costs associated with specific activities. It involves identifying and analyzing all the activities that contribute to the production of a product or the provision of a service and allocating the costs accordingly.
By adopting this method, managers are better equipped to identify where efficiency can be improved, where costs can be reduced, and how resources can be better allocated. The insights gained from activity-based budgeting can lead to more informed and strategic decisions about pricing, product development, process improvements, and cost management leading to enhanced cost control and more effective resource utilization.
A classic example of this would be understanding the detailed costs involved in different manufacturing processes, which would allow a manager to choose the most cost-effective method while maintaining quality.