Key Features of Activity Based Budgeting- Adelaide Brighton Cement

Question :

This assessment will cover following questions:

• Adelaide Brighton Cement is the renowned manufacturer of cement. Explain the usage of tool activity-based budgeting and highlight its features
• How planning is done in Adelaide Brighton Cement and also describe control activities?

INTRODUCTION

Management accounting is considered to be one of the most appropriate provision which in turn aids at carrying out the various performance and control functions within the company. Activity based budgeting is considered to be very useful which in turn helps in analysing the cost associated with carrying out each set of activity (Mauro, Cinquini and Grossi, 2017). This study will highlight on the key features of the activity based budgeting. This study also includes significant difference between traditional budgeting system and activity based budgeting. Furthermore, this study determines the ways where activity based budgeting in turn facilitates controlling and planning activities. This study also investigates, suitability of the activity based budgeting for the specific organization.