What-If Analysis and Activity-Based Budgeting: Forecasting Resource Demands

Activity-based budgeting has been discussed for some time, but becomes far more practical with a TDABC model. Using this approach, a company can now link its strategic plan and sales and production forecast to the specific demands for capacity required for implementation. This chapter introduces the powerful new extension of the TDABC model to perform what-if analysis and activity-based budgeting.