Activity Budget


Activity Based Planning (ABP ) is a working method which, based on the evolution of the ABC / M ( Activity Based Management) model, seeks to generate Information that integrates the processes of strategic planning and budgeting into an activity-based scheme to manage with a broader spectrum.
Activity Based Budgeting (ABB)
It is another way of budgeting or planning a period in an entity. The preparation of a budget based on the activities is the adaptation of the philosophy of Activity Based Cost (ABC) to the process of budgeting. With the use of the same it is intended that it focuses on activities, as these are the generators of costs and the resources to be used are estimated taking into account the outputs to be obtained and the factors that cause the costs of the activities to be developed.
The continuation of the principles of the ABC system within the current business environment, the budget technique used is closely linked to the development and survival of a company, a project or to project a business idea in a time horizon.
Activity-based budgeting is a budgeting method where the organization uses an understanding of its activities and behavior through measurements to quantitatively estimate the workloads and resource requirements that will be used in the execution of planning through Budget, assuming the budgeting of the cost of the activities and not of the products, since these are the generators of the cost.
This budget is an integrated and coordinated plan that is expressed in financial terms, regarding operations and resources that are part of a company, for a certain period, in order to achieve the goals set by management.
Activity-based budgeting is a budgeting method where the organization uses an understanding of its activities and behavior through measurements to quantitatively estimate the workloads and resource requirements that will be used in the execution of planning through Budget, assuming the budgeting of the cost of the activities and not of the products, since these are the generators of the cost.
This budget is an integrated and coordinated plan that is expressed in financial terms, regarding operations and resources that are part of a company, for a certain period, in order to achieve the goals set by management.
Activity Based Budgeting Technique

The ABC is a technique that allows to assign indirect costs to goods or services according to the activities that the product or service consume. In this way, activities are costed and not factors or elements of the cost, arriving to calculate the cost of a product on the basis of the consumption of activities that it does and not on the basis of the elements of the cost or basic resources, which are difficult Apportionment in the case of indirect costs. 

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