Question

Activity-based budgets a. start with output and then determine the resources necessary to create that output. b. use the knowledge of cost behavior to split the functional-based line items into fixed and variable components. c. rely on the use of functional-based line items. d. work in environments where the products are homogeneous and the production process is sinple.

Answer 1

a. start with output and then determine the resources necessary to create that output.

Step-by-step explanation:

Activity based budgeting is a budgeting system in which activities that leads to costs for a company is recorded, reserached, and analyzed.

All activities in am organization that bears costs are being scrutinized for potential ways to create efficiencies, then, budget are developed based on the results.

In order words, it's a budgeting that does not consider the past year's budget to arrive at current year's budget.

It often starts with an output and then determines the resources that are necessary to create this output and it helps companies to reduce costs, ajd make more profits, especially a new company or firms that are going through material changes.

Answer 2

a. start with output and then determine the resources necessary to create that output.

Step-by-step explanation:

Activity-based budgets start with output and then determine the resources necessary to create that output.