Activity Accounting(redirected from Profitability 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.