Activity Accounting

(redirected from Profitability Accounting)

Activity Accounting

The analysis and reporting of financial and other information on activities, in which the analysis is conducted by the persons or departments responsible for those activities. Activity accounting allows those persons or departments to take credit or blame for the good and bad decisions made over the period of time indicated in the accounting statement. It is used especially in decentralized organizations. Activity accounting is also called responsibility accounting or profitability accounting. See also: Activity-Based Costing.
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The SAP FI and CO financial modules include accounting, controlling and profitability accounting, which Intelligroup integrated to optimize PLIVA's operational processes.
Credit income from customer financing in Mexico, historically an important contributor to profitability accounting for approximately one fifth of revenues, will now be earned at Banco Azteca.