Activity Sequence-Sensitive

AAA

DEFINITION of 'Activity Sequence-Sensitive'

A calculation used in activity-based costing for determining the costs associated with activities based on particular time-based processes. Activity sequence-sensitive is a means of determining the costs of an activity dependent upon the order in which the tasks are accomplished and the time required to complete individual tasks.

INVESTOPEDIA EXPLAINS 'Activity Sequence-Sensitive'

Activity sequence-sensitive takes into consideration the order of the activities when determining costs. A manufacturing process, for example, involves many time consuming and costly (activity sequence-sensitive) activities to arrive at the end product. The order that the activities are handled affects the costs associated with the process.

RELATED TERMS
  1. Activity Dictionary

    A list of particular activities that are utilized in activity-based ...
  2. Activity Capacity

    The degree to which a particular action is expected to perform. ...
  3. Activity Cost Driver

    A factor that influences or contributes to the expense of certain ...
  4. Batch-Level Activities

    In managerial accounting, production costs that are incurred ...
  5. Activity Center

    A pool of activity costs associated with particular processes ...
  6. Activity-Based Budgeting - ABB

    A method of budgeting in which the activities that incur costs ...
Related Articles
  1. Retirement

    Footnotes: Early Warning Signs For Investors

    These documents hold very important information, but reading them takes skill.
  2. Markets

    Cleaning Up Dirty Surplus Items On The Income Statement

    Dirty surplus items can skew net income. Knowing how to account for them will give you a cleaner picture.
  3. Entrepreneurship

    Getting To Know Business Models

    Learning how to assess business models helps investors identify companies that are the best investments.
  4. Markets

    Operating Cash Flow: Better Than Net Income?

    Differences between accrual accounting and cash flows show why net income is easier to manipulate.
  5. Investing

    The Ins and Outs Of In-Process R&D Expenses

    Are these charge-offs fair accounting or earnings manipulation? Learn more here.
  6. Investing

    What's a Run Rate?

    Run rate is a term used to denote annualized earnings extrapolated from a shorter time frame. Management uses the run rate to estimate future revenues.
  7. Professionals

    Financial Accounting

    Financial accounting is the process of gathering, recording, summarizing and reporting financial data relating to a business. The ultimate goal is to accurately report the financial picture and ...
  8. Investing

    What are Direct Costs?

    Direct costs for finished goods refer to the items and services directly used in production. Other costs such as rent and insurance for the production site are indirect costs. These costs may ...
  9. Investing

    What is Contingent Liability?

    A contingent liability is an amount that might have to be paid in the future, but there are still unresolved matters that make it only a possibility. Lawsuits and the threat of lawsuits are the ...
  10. Investing

    What's Accrued Interest?

    Accrued interest has two meanings. In accounting, it is interest that has been earned, but the time for payment has not yet occurred.

You May Also Like

Hot Definitions
  1. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  2. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  3. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  4. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  5. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
  6. Absorption Costing

    A managerial accounting cost method of expensing all costs associated with manufacturing a particular product. Absorption ...
Trading Center