Activity Dictionary
Categories: Accounting, Metrics, Company Management
Think of it as a diary of every little input that was made in the lawn-specific fertilizer division of BigFatChemicals, Inc.
Bat guano was mined, shipped to the U.S., checked for density, acidity, taste and color. That took 17 union workers 72.3 hours each. Then dye was added, which took the union workers 28.3 hours each...to produce one ten-ton truckload of lawn growing love.
The activity diary takes into account every little activity, along with the overhead load, risk, and other costs to try and figure out the best way to allocate resources (costs) in one division of a company versus its inter-company rival. See ABC Accounting.