diff-activit type-allocation

[Former Member]

1.What is the difference between activity type and activity allocation?in product costing.

[Former Member · Accepted solution]

Hi,

Activity Type - Activity types are basically activities which are performed in a cost center and which are measurable in terms of quantity and value.

For example, machining is an activity performed in u2018Machiningu2019 cost center. Other examples could be drilling hours, turning etc.,

As the work center is assigned to a cost center, the activities defined in cost center are visible in work center. In work center the actual numbers of hours of operation are recorded for an activity and the price is determined from the assigned cost center.

Activity Allocation - For recording the activity costs.( For the examples given above for activity types, the cost element category is 43)

hope this clarifies

regards,

radhika