Definition of Activity-Based Accounting
A process of accounting that focuses on activities as the primary cost objects and uses the costs of these activities as building blocks for compiling the costs of other cost objects (such as a product or a department). Also called activity-based costing or activity accounting.
About the Author
True Tamplin, BSc, CEPF®
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.