Activity-based budgeting

Activity-based budgeting (ABB) is budgeting approach that focuses on the budgeted cost of the activities necessary to produce and sell products and services.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Activity-based budgeting (ABB). Budgeting approach that focuses on the budgeted cost of the activities necessary to produce and sell products and services.