Activity Dictionary
An activity dictionary is a detailed listing of activities performed within an organization, along with descriptions and relevant information such as associated costs and resources. It is used in activity-based costing (ABC) to identify and analyze the various processes that contribute to the production of goods or services.
Related glossary terms
Activity-Based Costing (ABC)
Activity-Based Costing (ABC) allocates overhead to activities by resource use. It gives more accurate cost data than traditional costing to support decisions.
Activity-Based Costing System
An activity-based costing system collects and allocates costs via ABC procedures. It enables accurate cost tracking for strategic and operational decisions.
Activity Driver
An activity driver—such as labor or machine hours—determines an activity's cost. In ABC costing, drivers allocate costs based on resource consumption.
Activity Level
Activity level is the volume of operations in a period—units produced or transactions processed. It guides cost management and resource allocation in logistics.
