Budgets, forecasts & scenarios · Specialist

Activity-based budgeting

Also called: ABB

ELI5

Budgeting built from planned activities and their resource requirements.

Used in conversation

“Can you walk me through how activity-based budgeting works in the model?”

Pitch context

You will see “Activity-based budgeting” in financial models, budgets, board packs and investor materials when the discussion reaches budgets, forecasts & scenarios.

Why it matters: In budgets, forecasts & scenarios, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Sources & evidence · 5

Direct term-level sources and supporting source families.