P1 Exam Dumps : Management Accounting

Activity based budgeting allows the ranking of activities and the determination of how limited resources should be allocated across competing activities.

Activity based budgeting provides a clear framework for understanding the link between turnover and the level of activity.

Activity based budgeting is useful for the review of quality systems utilization.

Activity based budgeting allows the identification of value added and non-value added activity and ensures that any budget cuts are made to non-value added activities.

Co-ordination

Communication

Profit maximisation

Diversification

Authorization

Consolidation

set prior to the control period and not subsequently changed in response to changes in activity period has expired

continuously updated by adding a further accounting period when the earliest accounting period has expired

changed in response to changes in the level of activity

changed in response to changes in costs