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A significant advantage of using either an activity-based budgeting (ABB) or a time-driven activity-based budgeting (TDABB)...

A significant advantage of using either an activity-based budgeting (ABB) or a time-driven activity-based budgeting (TDABB) system is?

  • Reduction in the cost of developing budget amounts.

  • Estimation of the cost of unused capacity, as a by-product of the budgeting process.

  • Increased levels of "budgetary slack," which has a positive influence on motivation.

  • Elimination of the need to generate a sales forecast for the upcoming period.

  • The incorporation of continuous-improvement standards within the budgets.

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Answer #1
Option B is the answer
One of the significant advantages of using ABB or TDABB is that the cost of unused capacity can be estimated, as a byproduct of budget process
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