Chapter 16 Activity Based Budgeting

After studying this Chapter 16 Activity BasedBudgeting, you should be able to:

1. Describe the shortcomings of the traditional master budgeting process.
2. Define flexible budgeting, and discuss its role in planning, control, and decision making.
3. Define activity-based budgeting, and discuss its role in planning, control, and decision making.
4. Identify and discuss the key features that a budgetary system should have to encourage managers to engage in goal-congruent behavior.
5. Describe budgets for merchandising and service firms and zero-base budgeting.

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