Question: Activity - based budgets use the knowledge of cost behavior to split the functional - based line items into fixed and variable components. start with
Activitybased budgets
use the knowledge of cost behavior to split the functionalbased line items into fixed and variable components.
start with output and then determine the resources necessary to create that output.
rely on the use of functionalbased line items.
work in environments where the products are homogenous and the production process is simple.
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