activity

Activities are the major tasks performed by the organization to accomplish each of its functions. Activities are usually defined as part of processes or plans, and are documented in procedures. Several activities may be associated with each function. An activity is identified by the name it is given and its scope (or definition). The scope of the activity encompasses all of the transactions that take place in relation to it. Depending on the nature of the transactions involved, an activity may be performed in relation to one function, or it may be performed in relation to many functions. In cost accounting, an activity is the actual work task or step performed in producing and delivering products and services. An aggregation of activities performed within an organization that is useful for purposes of activity-based costing.