Business Definition for: activity driver analysis
activity driver analysis
identification and evaluation of the activity drivers used to trace the cost of activities to cost objects. Activity driver analysis may involve selecting activity drivers with a potential for cost reduction.
See also
pareto analysis
Related Terms:
analysis used to differentiate between the vital few and the trial many. It is based on the concept that about 80 percent of the problems come from 20 percent of the items. Pareto analysis can be used to identify cost drivers or activity drivers that are responsible for the majority of cost incurred by ranking the cost drivers in order of value.
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