Question: 1. How does an activity-based budget differ from a flexible budget in terms of cost allocation and adjustment to changes in the volume of activity?

1. How does an activity-based budget differ from a flexible budget in terms of cost allocation and adjustment to changes in the volume of activity?

2. What are the advantages and disadvantages of a zero-based budget, particularly in terms of resource allocation and the requirement for annual justification and prioritization of every department or activity

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1 ActivityBased Budget vs Flexible Budget Cost Allocation ActivityBased Budget ABB ABB allocates costs based on the activities that drive those costs ... View full answer

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