Dictionary of Accounting Terms: surrogate activity driver
surrogate activity driver
activity driver that is not descriptive of an activity, but that is closely correlated to the performance of the activity. The use of a surrogate activity driver should reduce measurement costs without significantly increasing the costing bias. The number of production runs, for example, is not descriptive of the materialdisbursing activity, but the number of production runs may be used as an activity driver if material disbursements coincide with production runs.
