Activity-Based Budgeting

An approach to budgeting where a company uses an understanding of its activities and driver relationships to quantitatively estimate workload and resource requirements as part of an ongoing business plan(1) A statement of long-range strategy and revenue... More. Budgets show the types, number of, and cost of resourcesEconomic elements applied or used in the performan... that activities are expected to consume based on forecasted workloads. The budget is part of an organization’s activity-based planningActivity-based planning (ABP) is an ongoing proces... More processA series of time-based activities linked to comple... and can be used in evaluating its success in setting and pursuing strategic goals.