Activity Base Definition
Activity Base Definition
Activity base is a measure of whatever causes the incurrence of a variable cost. For example, the total cost of X-ray film in a hospital will increase as the number of X rays taken increases. Therefore, the number of X rays is an activity base for explaining the total cost of X-ray film.
Other Related Accounting Articles:
- Allocation Base Definition
- Variable Overhead Efficiency Variance Definition
- Step Variable Cost Definition
- Variable Cost Definition
- High-Low Method
- Independent Variable Definition
- How to Calculate Activity Based Costing
- Activity Cost Driver
- Dollar Value LIFO Method
- Marginal Costing Definition
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