Activity Sequence-Sensitive
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. |
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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. |
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