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A Significant Advantage of Using Either an Activity-Based Budgeting (ABB)

Question 32

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A significant advantage of using either an activity-based budgeting (ABB) or a time-driven activity-based budgeting (TDABB) system is:


A) Reduction in the cost of developing budget amounts.
B) Estimation of the cost of unused capacity, as a by-product of the budgeting process.
C) Increased levels of "budgetary slack," which has a positive influence on motivation.
D) Elimination of the need to generate a sales forecast for the upcoming period.
E) The incorporation of continuous-improvement standards within the budgets.

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