What does ABB mean in UNCLASSIFIED

Activity Based Budgeting (ABB) is a method of establishing budget allocations and guidelines within an organization. It allows organizations to efficiently allocate resources in order to maximize the performance of their activities, while also providing cost visibility.

ABB works by determining how much funding should go towards each activity based on its importance or the expected results that will be generated from it. This helps to ensure that resources are being used in the most effective and efficient way possible.

By utilizing ABB, organizations can increase transparency into their costs, assess performance more accurately against goals, set realistic objectives for spending, and identify areas where improvements can be made in order to make better use of their resources.

In order for ABB to be effectively implemented, organizations need access to a detailed view of their expenses along with insight into the respective outcomes achieved from those expenditures. Additionally, sound forecasting techniques should be employed in order to predict future costs associated with activities as well as potential returns on investments.

ABB can be applied across any industry or company size as long as there is adequate data available regarding expenses and outcomes achieved from those expenditures. It is equally applicable whether an organization typically engages in traditional discretionary spending or if they have more sophisticated internal models such as zero-based budgeting (ZBB).