Traditional budgeting is generally better than activity-based budgeting when attempting to reduce costs by eliminating non-value-added activities.

Traditional Budgeting

An approach to budgeting focusing on incremental changes to the previous year's budget rather than starting from zero.

Activity-Based Budgeting

A budgeting approach that considers the underlying activities and costs as the bases for budgets, focusing on cost drivers.

Non-Value-Added Activities

Processes or actions that do not add value to the product or service from the customer's perspective, potentially leading to unnecessary costs.