Surrogate activity driver

A surrogate activity driver is a driver that is closely correlated to the performance of an activity, but which is not descriptive of it. For example, the number of production runs can be used as a surrogate activity driver for the materials disbursement activity if material disbursements coincide with the volume of production runs. This option is used when it is too difficult or expensive to collect data about an activity driver.

Related Courses

Activity-Based Costing
Activity-Based Management