... gives correct basis for comparison between actual and expected financial costs, give actual activity. Traditionally, most companies used standard costing as part of their budgeting process. This is found to be concentrating mostly on financial numbers, short term and performance was based on variances to the budget. Therefore, more strategic approaches have been adopted to enhance budgeting and performance measures such as the Activity Based Costing, Beyond Budgeting, Key Performance Indicators and Benchmarking. One of the early works in reformatting budgets is the ABC. In making changes to budgeting, the activity based budgeting has been constructed to further enhance the master budget. With the elements of ABC in budgeting, it provides solid reasoning for budgeting costs at particular levels which is more useful for management, because it reveals the cost level along changes with cost drivers, if changed (Hilton, 2005). Besides that, the zero based budgeting is also introduced by ...

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