Answer
An activity base is a synonym for the term of "driver" in accounting. It represents a type of unit which will determine the variable cost. A good example is represented by the units which were sold which will directly influence the variable cost.
Work Step by Step
Example of activity bases: the number of units which the companies produced, the number of units which are delivered to the clients, the number of purchases orders, the hours spent by a team on servicing products, etc.
