Traditional budgeting systems are incremental in nature and tend to focus on cost centres. Activity based budgeting

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Traditional budgeting systems are incremental in nature and tend to focus on cost centres. Activity based budgeting links strategic planning to overall performance measurement aiming at continuous improvement.

(a) Explain the weaknesses of an incremental budgeting system. (5 marks)

(b) Describe the main features of an activity based budgeting system and comment on the advantages claimed for its use. (10 marks)

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Management Accounting For Business Decisions

ISBN: 9781861527707

2nd Edition

Authors: Colin Drury

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Question Posted: Jun 27, 2024 02:16 AM

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Traditional budgeting systems are incremental in nature and tend to focus on cost centres. Activity based budgeting

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Management Accounting For Business Decisions

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