Activity Based Budgeting in Management Accounting

Management Accounting

EXECUTIVE SUMMARY
This study has evaluated that, activity based budgeting is very useful in allocating cost
related with each activity. It also helps in assessing the various cost drivers of the study in order
to determine the true cost of each activity in the organization. This study has assessed activity
based budgeting incur cost which are assessed and analysed by taking into consideration past
budget. On the other hand, traditional budget system adjust previous budget.

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
a) Description of organization.....................................................................................................1
b) Analysis and key features of the activity based budgeting.....................................................2
c) Difference between activity based budgeting and traditional budgeting. ..............................4
d) Activity Based Budgeting in planning and controlling the activities of Adelaide Brighton.. 6
e) Discussion over the suitability of the activity based budgeting for Brighton........................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

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.
MAIN BODY
a) Description of organization.
Adelaide Brighton Cement is considered to be one of the leading Australian manufacturer
of the lime, dry blended products, integrated construction material and cement. This company
was opened in the year 1882. Adelaide Brighton Cement tends to produce cement, clinker, lime
products, ready to mix concrete products, ground blast furnace slag and fly ash. Adelaide
Brighton Cement company one of the key activity is to produce, import and distribute range of
the products offered by the organization (Adelaide Brighton Cement Ltd, 2020). This company is
listed on Australian stock exchange where over 1600 employees tend to work passionately and
dedicatedly with the culturally diverse and environmental friendly company in Australian
territories and states. Adelaide Brighton Cement tends to produce various range of products and
services in order to build, construct, mineral processing market and infrastructure. The
operational based facilitates of the Adelaide Brighton Cement tends to largely focus on
prompting supply to the customers which in turn focuses on maintaining strategic balance which
in turn is considered to be necessary for meeting the demand of the customers and company
across nation (Adelaide Brighton Cement Ltd, 2020). This in turn helps company in offering
supply package which in turn are flexibly supported by the storage, supply logistics and
transportation for various locations throughout Asia and Australia. Adelaide Brighton Cement
tends to operate its distribution and manufacturing facilities in New South Wales, Victoria,
Fyansford, Northern Territory, South Australia, etc. Adelaide Brighton Cement is highly
committed to the sustainable development of the variety of range of actions and initiatives which