what is activity based budgeting abb 
activity based budgeting abb is a system that records researches and analyzes activities that lead to costs for a company every activity in an organization that incurs a cost is scrutinized for potential ways to create efficiencies budgets are then developed based on these results activity based budgeting abb is more rigorous than traditional budgeting processes which tend to merely adjust previous budgets to account for inflation or business development 