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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based CAM-I Activity-Based Budgeting group tries to improve the traditional budgeting system by putting more focus on the connection between operational planning and financial results.
To illustrate activity-based budgeting, the author presents the activities of a hypothetical police department's patrol force to determine the number of officers required to handle the workload; the cost of salaries, materials, and equipment; and the distribution of time across three primary categories of patrol work: calls for service, administrative duties, and proactive functions.
The document also includes information about the Tempus program, activity-based budgeting, and an annex describing joint work between the ETF and the European Centre for the Development of Vocational Training (CEDEFOP), with special reference to candidate countries.
The sections on decision making ignore economic order quantity, learning curves, performance evaluation, budgeting with uncertainty, and activity-based budgeting.
As I've done some flexible and activity-based budgeting in my previous job, I'd love to have done it here, too.
These include topics such as the TDABC estimation of resource demands, calculation of capacity cost rates, project and implementation steps used to build TDABC, activity-based budgeting with the TDABC model, TDABC's application to mergers and acquisitions, and TDABC's integration with several contemporary improvement initiatives.
With the introduction of activity-based budgeting, most administrative expenditure is now included in the relevant policy area and only specific expenditure such as publications or representation offices is now recorded separately.
based CAM-I Activity-Based Budgeting (ABB) group advocates improving the budgeting system by marrying a more complete, activity-based operational model with a detailed financial model.
In a manufacturing environment, this probably already exists for the direct costs in the form of bills for material, but activity-based budgeting extends this concept beyond the factory floor to the support areas like finance, personnel and informatics.
The six options given were: Rolling Forecast, Balanced Scorecard, Customized Approach, Zero-Based Budgeting, Value-Based Management/EVA [R] and Activity-Based Budgeting (see accompanying box).

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