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Activity Based Budgeting

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Activity Based Budgeting
A way to budget that analyzes potential activities in which a company can engage. These activities are organized according to the company's goals, and the costs of each are organized to compile the budget. ABB contrasts with traditional budgeting, which usually simply increases the previous year's budget to account for inflation and the like; rather, ABB seeks out new opportunities and allocates resources in the budget based on them. Proponents say that ABB is a more accurate way to forecast budgeting.


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The integration will be based on three levels of annual budgeting: strategic, recurrent and capital, under the Activity Based Budgeting methodology specifically designed to ensure higher financial discipline and better socio-economic benefits.
Activity Based Budgeting Activity based budgeting is yet another new technique that links the budgeting process to organizational strategy.
Description Costing Objective ABC Methodology Rate Setting Total Costs Full Costing Managed Competition Avoidable Total Costs Full Costing Service Redesign Comparable Costs KIS Costing Activity based Budgeting Budget Estimates KIS Costing Process Improvement Comparable Costs KIS Costing Keep-it-simple Methodology.
 
 
 
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