Final answer:
Activity-based budgeting allows the use of multiple drivers and multiple cost pools in the budgeting process.
Step-by-step explanation:
Activity-based budgeting (ABB) is a budgeting process that involves identifying and allocating costs to specific activities or tasks. It allows for the use of multiple drivers and multiple cost pools in the budgeting process, making it suitable for organizations with complex operations. For example, a manufacturing company may use different drivers such as machine hours, labor hours, or number of setups to allocate costs to different cost pools such as machine maintenance, direct labor, or setup costs.