The following statements have been made about Activity-Based Budgeting (ABB): (1) The costs determined using ABC are used as a basis for preparing budgets. (2) The aim of ABB is to control the number of units output rather than the costs themselves. Which of the above statement(s) is/are true?
A、(1) only
B、(2) only
C、Neither (1) nor (2)
D、Both (1) and (2)
A、(1) only
B、(2) only
C、Neither (1) nor (2)
D、Both (1) and (2)
【参考答案及解析】
(2) is wrong – activities drive costs and the aim is to control the causes (drivers) of costs, rather than the costs themselves. This, in turn, will ensure that the costs are better managed, and better understood.
(2) is wrong – activities drive costs and the aim is to control the causes (drivers) of costs, rather than the costs themselves. This, in turn, will ensure that the costs are better managed, and better understood.