Activity-Based Budgeting
Align Your Company for Improved Performance
Activity-based costing (ABC) practices have greatly improved cost analysis over the past few decades. Using the principles of ABC, activity-based budgeting (ABB) improves budget accuracy. ABC and ABB can help you:
- Improve profitability analysis
- Reduce waste and underinvestment
- Know the right amount of overhead you need to match production
In this video, I’ll:
- Explain the basics of activity-based costing (ABC) and activity-based budgeting (ABB)
- Reveal how ABB and ABC can help you better manage production capacity
- Describe how ABC and ABB can help you better understand company activities to reduce waste and identify profitable growth
- Identify the pros and cons of ABB to help you decide if ABB is right for you