Activity is about gathering and examining economic and operational data about the activities measured important in an organization. Activity is about arranging and gathering permanent records. Records provide proof of purchase, evidence of payment and details of payroll etc.
Activity Definition An event that causes the consumption of overhead resources in an organization. Recommended Books ! Or Download E accounting book in MS-word format for just 20 $ - Click here to Download
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