Develop an activity-based budget for Pfizer Inc. for the upcoming fiscal year, incorporating costs associated with various business activities or cost drivers. Allocate overhead costs to different activities based on their consumption of resources. Discuss the advantages of activity-based budgeting in enhancing cost control and resource allocation for Pfizer.
Values:
•Total Overhead Costs: $5,000,000
•Number of Cost Drivers: 4
•Budgeted Activity Levels: Vary by activity