Define: Activity Analysis

UK Accounting Glossary

Definition: Activity Analysis


Quick Summary of Activity Analysis


In activity-based costing, the identification and description of activities in an organisation.



What is the dictionary definition of Activity Analysis?

Dictionary Definition


In activity-based costing, Activity Analysis is the identification and description of the activities in an organisation.

Each department will determine it’s key activities, how many people work on these activities, and what resources are necessary to carry out said activities.

Some activities may be performed across a number of different departments.


Full Definition of Activity Analysis


Activity analysis refers to the Identification and description of activities in an organisation, and evaluates their impact on its operations.

Activity analysis determines:

  1. What activities are executed
  2. How many people perform the activities
  3. How much time they spend on them
  4. How much and which resources are consumed
  5. What operational data best reflects the performance of activities
  6. What value the activities are to the organisation.

Activity analysis is accomplished through direct observation, interviews, questionnaires, and review of the work records.



Examples of Activity Analysis in a sentence


For many enterprises economic activity analysis is helpful in terms of helping to discover ways to increase economic benefits.
Task complexity is an important consideration in regards to activity analysis.

Activity Analysis FAQ's



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Activity Analysis. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. July 16, 2019 https://payrollheaven.com/define/activity-analysis/.
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Activity Analysis. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/activity-analysis/ (accessed: July 16, 2019).
American Psychological Association (APA):
Activity Analysis. PayrollHeaven.com. Retrieved July 16, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/activity-analysis/

Definition Sources


Definitions for Activity Analysis are sourced/syndicated from:

  • Oxford Dictionary Of Economics
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th May 2019.