Definitions for "Activity-Based Costing"
Activity-based costing defines healthcare costs in terms of a healthcare organization's processes or activities. The costs are then associated with significant activities or events. It relies on the following 3 step process: 1) Activity mapping, which involves mapping activities in an illustrated sequence; 2) Activity analysis, which involves defining and assigning a time value to activities; and , 3) bill of activities, which involves generating a cost for each main activity.
A two-stage procedure used to assign overhead costs to products or services produced. In the first stage, significant activities are identified, and overhead costs are assigned to activity cost pools in accordance with the way resources are consumed by the activities. In the second stage, the overhead costs are allocated from each activity cost pool to each product line in proportion to the amount of the cost driver consumed by the product line.
A process-oriented approach to accounting that starts by determining how much it costs to perform each activity and then adds up activity costs to determine process costs, an so forth. The idea is that you add together all the costs in a complete value chain, subtract the costs from the income for the product or service produced by the value chain, and determine the profit on the process.
Keywords:  aidas, attitudes, model
AIDAS model Attitudes