Surrogate activity driver definition

What is a 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. This option is used when it is too difficult or expensive to collect data about an activity driver. Surrogate activity drivers are especially cost-effective when the related information is already being collected by an existing data collection system.

Example of a Surrogate Activity Driver

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.

Related AccountingTools Courses

Activity-Based Costing

Activity-Based Management