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Understanding Activity-Based Budgeting in Performance-Based Budgeting Systems

Activity-Based Budgeting (ABB) is a budgeting process focused on improving organizational systems to meet customer needs and align with the organization's goals and strategies. It differs from traditional budgeting by focusing on activities rather than cost elements, utilizing resources from expected activities, and aiming for cost-effective budgets aligned with workload. ABB principles emphasize continuous improvement, customer value mindset, continuous improvement mindset, cross-functional mindset, and employee empowerment mindset.

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Understanding Activity-Based Budgeting in Performance-Based Budgeting Systems

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