Activity Analysis is an essential component of Activity-Based Costing (ABC) that involves identifying and describing activities within an organization, alongside their resource requirements.
In activity-based costing, a facility-sustaining activity is an activity that is performed to sustain the organization as a whole. Examples of such activities include security, safety, maintenance, and plant management. These costs cannot be directly traced to specific products.
Job rotation involves moving an employee periodically from one job to another. The primary purposes are to offer comprehensive organizational experience as a training process and to mitigate boredom resulting from repetitive job tasks.
A Management Agreement is an administrative understanding allowing individual managers to control specified organizational activities for a particular period of time. It also exists between companies in which an intercompany agreement is developed to manage certain activities cooperatively.
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