To introduce activity-based budgeting,
Identify cost activities and cost drivers which best illustrates the relationship between costs and activities. After which, the company should determine the budgeted demand and production quantity so as to allocate its resources to meet its demand. Lastly, it should prepare the sales and production budget based on activity-based budgeting.

The advantages of activity-based budgeting are:
Activity-based budgeting focus on the activities of the organization instead of looking at the types of costs in traditional budgeting.
It is also able to identify costs inefficiencies in activities.
Activity-based budgeting concentrates on the whole of an activity and not on its separate parts. This means similar activities are grouped together, which allows cost drivers to be identified and scrutinized in decision making.
Activity-based budgeting identifies the behaviour of cost drivers & cost activities so that managers can be held responsible for such activities.
Activity-based budgeting can also identify the value-adding & non-value adding activities. This allows a company to enhance its value-adding activities and at the same time, try to eliminate the non-value adding ones. This will result in better allocation of resources, which eventually improves the company's performance.

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My heavy eyelids are closing on me, but i have to force myself to carry on revising. I don't wanna waste my time, effort and $. Although i'm not really happy with life now, but this was what i'd chosen. Even if i am right, i would still have to give to take. I know i can do it, its just a matter of wanting or not. ACCA isn't similar to secondary or tertiary education. It all boils down to self-discipline and determination, and of course, 200% of hard work.

Sometimes i really wished time would stay still when i was 16 years. Its so tiring to be a grown up. At times, i can't remember what its like not to be tired.























A fault confessed is half redressed.

fer.