What is the activity dictionary?
Activity Dictionary is a list of activities associated with the company and its related costs. They are used to help analyze the cost -based costs (ABC), which is a process in which indirect costs of activity are determined. The activity dictionary is one of the primary sources of detail needed for the performance of this analysis. It is also a tool that helps the organization to determine how to increase the cost -effectiveness of its operations
most of the dictionaries of activities begin with content. They tend to consist of individual chapters for each department under which there are sometimes subcategories for different functions. The number of subcategories may vary for each department depending on its function and size. For example, the Ministry of the Administration may have several categories such as budget and fiscal services, while risk and management can have no subcategories at all.
The structure of items in the Dictionary of Activity can also VV dependence on the needs of society is wide. Typical item will define a nodThe positive structure of the activity, describe in which area it serves, and in many cases it will also have the ABC code that can be used to correspond to the cost -based costs.
In most cases, a vocabulary is a virtually detailed list. Items in some dictionaries can also show the individual costs for each activity and the amount of money it earns. Other common details in the activity dictionary include information on drivers, suppliers and customers.
The activity dictionary also usually places each item in the structure of the organization. For example, it will indicate which department carries out the activity and what function it performs in overall operations. The final result should provide the reader with a detailed record of the company's activities and an overview of the steel peration.
In addition to improving financial performance, the Dictionary of Activity can be used to increase the performance of the company. Have a resource,which states every company's activity can facilitate operations analysis. Managers, managers and supervisors can use the dictionary as a guide for fine fine -tuning at the department or society level. This can allow users to determine excessive, inefficient or otherwise counterproductive activities with greater ease.
Activity dictionary is usually a primary reference tool for activities based on activities (ABC). This accounting method is used to ensure that any organization's activity is cost -effective, efficient and necessary. For the most part, the method is used in production, where many activities are easily quantifiable.