Activity Base Definition

By Sidra Farid March 20, 2014 #Activity, #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.

By Sidra Farid

Sidra is a accounting teacher in a college and is expert in Managerial accounting . She is also the permanent writer at Accounting Details and is famous for her easy language and simple answers.