is activity based budgeting the same as activity based costing
What is an 'Activity-Based Budgeting - ABB'. Activity-based budgeting is a method of budgeting in which the activities that incur costs in every functional area of an organization are recorded and their relationships are defined and analyzed. Activity-based budgets do not simply adjust prior budgets to account for inflation or business development.
Activity-based costing. Activity-based costing, also known as ABC, is an accounting method that identifies a company's activities and assigns costs to units produced by the company based on the number of activities used by each unit.