The correct answer is: B. activity based budgeting
Activity-based budgeting (ABB) is a budgeting method that focuses on the costs of activities, rather than the costs of products or services. ABB is based on the idea that the costs of activities drive the costs of products or services, and that by understanding and managing the costs of activities, it is possible to control the costs of products or services.
ABB is a more sophisticated budgeting method than traditional budgeting methods, and it requires more data and analysis. However, ABB can provide more accurate and useful information for decision-making, and it can help organizations to improve their efficiency and profitability.
The other options are incorrect because:
- Cost-based budgeting is a traditional budgeting method that focuses on the costs of products or services.
- Production-based budgeting is a budgeting method that focuses on the costs of production.
- Raw material budgeting is a budgeting method that focuses on the costs of raw materials.