DEFINITION of 'Activity Dictionary '
A list of particular activities that are utilized in activity-based costing (ABC) analysis. The list consists of descriptions of a variety of activities, including a description of the activity, inputs, outputs, suppliers, customers and cost drivers. An activity dictionary is intended to help decision-makers determine and improve the efficiency of an operation as it pertains to costing.
BREAKING DOWN 'Activity Dictionary '
An activity dictionary simplifies the activity analysis process by listing activities by function, department and business process. Managers, consultants and other practitioners of activity-based costing may use an activity dictionary to help define key metrics and look for ways to improve operations.