An activity dictionary is a detailed list of all activities performed in an organization, along with their descriptions.

Simple Meaning:

It is a document that explains what activities are done in a business and what each activity involves.

It Usually Includes:

Name of the activity

Description of the work performed

Department responsible

Cost driver (what causes the cost)

Related resources

Example:

Activity: Machine Setup
Description: Preparing machines before production
Cost Driver: Number of setups

Purpose:

Helps in Activity-Based Costing (ABC)

Improves cost control