The cost systems of the last two centuries that determined the implementation of standard and flexible budgets cost systems have serious restrictions regarding management needs for costs, products, clients and feedback evolution. We consider that the answer is activity based budgeting (ABB). ABB places responsibility and accountability on employees to manage their activities to achieve their performance targets, embeds a process view, which more explicitly illustrates departmental interdependencies, provides visibility into managing excess and/or insufficient capacity, and presents a more realistic view of workloads including the impact of service levels.