Page 164 - P1 Integrated Workbook STUDENT 2018

Chapter 9

3.3 Activity Based Budgeting (ABB)

Budgets are set for each activity using costs determined via ABC.

 Best when overheads are  Expensive
significant
 Only useful if using ABC
 Very useful in TQM environments

 Cost control and cost cutting are
easier

Illustrations and further practice

Now try illustration 3 from Chapter 11.

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