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Why acticity-based budgeting is not always useful or applicable,as in the short term many overhead costs are not controllable and do not vary directly with changes in the colume of activity for the cost driver.?
Can you explain that statement with an example sir or a simpler manner sir.?Have you watched my free lectures on ABC? Because as I explain in the lecture the main benefit of ABC is that overheads might be able to be reduced by operating more efficiently.
However this is only possible if the overheads can be controlled and do vary with changes in the cost driver. In the short-term this might not be the case.
I explain this and illustrate with an example in my lectures.
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