The research aims to address the theoretical framework of the activity-based budgeting technique and demonstrate its strategic impact on both profitability and competitiveness, in a way that helps improve the performance of the industrial enterprise in general by reducing cost and improving quality through detailed estimates of the activity requirements of the proposed production plan for the enterprise, work To avoid the shortcomings of traditional costing systems, to keep pace with the management's information needs, and to provide better products to customers than what competitors have provided in the competitive market. The research was applied in the General Company for Glass and Refractory Industry on the data of the fiscal year 2021. The research concluded that the activity-based budget (ABB) focuses on the concept of linking resources to the objectives of the organization, and therefore it is a method to enhance the accuracy of financial forecasts, increase administrative understanding, and facilitate efforts to reorganize and re-evaluate operations, and therefore it links between long-term and short-term strategic planning, including Helps improve profitability and increase the competitiveness of industrial enterprises.