![]() |
|
Financial Terms | |
Activity-based budgeting |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: financial advisor, investment, money, inventory, finance, tax advisor, credit, stock trading, |
Definition of Activity-based budgetingActivity-based budgetingA method of budgeting that develops budgets based on expected activities and cost drivers – see also activity-based costing.
Related Terms:activity-based budgeting (ABB)planning approach applying activity drivers to estimate the levels and costs of activities necessary to provide the budgeted quantity and activitya repetitive action performed in fulfillment of business functions activity analysisthe process of detailing the various repetitive actions that are performed in making a product or Activity-based costingA method of costing that uses cost pools to accumulate the cost of significant business activities and then assigns the costs from the cost pools to products or services based on cost drivers. activity based costing (ABC)A relatively new method advocated for the activity-based costing (ABC)a process using multiple cost drivers to predict and allocate costs to products and services; Activity-based costing (ABC)A cost allocation system that compiles costs and assigns ![]() activity-based management (ABM)a discipline that focuses on the activities incurred during the production/performance process as the way to improve the value received activity centera segment of the production or service activity drivera measure of the demands on activities and, Allocation base A measure of activity or volume such as labourhours, machine hours or volume of production Asset activity ratiosRatios that measure how effectively the firm is managing its assets. Asset-based financingMethods of financing in which lenders and equity investors look principally to the Asset-Based FinancingLoans granted usually by a financial institution where the asset being financed constitutes the sole security given to the lender. attribute-based costing (ABC II)an extension of activitybased costing using cost-benefit analysis (based on increased customer utility) to choose the product attribute budgetingthe process of formalizing plans and committing business-value-added activityan activity that is necessary for the operation of the business but for which a customer would not want to pay Capital budgetingThe process of choosing the firm's long-term capital assets. capital budgetingRefers generally to analysis procedures for ranking Capital BudgetingThe process of ranking and selecting investment alternatives and capital budgetinga process of evaluating an entity’s proposed Capital budgetingThe series of steps one follows when justifying the decision to purchase capital budgeting decisionDecision as to which real assets the firm should acquire. continuous budgetinga process in which there is a rolling Equity-based insuranceLife insurance or annuity product in which the cash value and benefit level fluctuate according to the performance of an equity portfolio. non-value-added (NVA) activityan activity that increases the time spent on a product or service but that does not increase its worth or value to the customer Planning, programming and budgeting system (PPBS)A method of budgeting in which budgets are allocated to projects or programmes rather than to responsibility centres. Priority-based budgetA budget that allocates funds in line with strategies. program budgetingan approach to budgeting that relates value-added (VA) activityan activity that increases the worth of the product or service to the customer Value-based managementA variety of approaches that emphasize increasing shareholder value as the primary goal of every business. zero-base budgetinga comprehensive budgeting process Zero-based budgetingA method of budgeting that ignores historical budgetary allocations and identifies the costs that are necessary to implement agreed strategies. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |