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Answer» Activity type is defined as activity performed in cost center within controlling area. For each cost center, you perform the following activities − Activities performed by the cost center. Cost are debited to products when they use the activities of the cost center. In Cost Center accounting, to plan and allocate the activities, system records quantities that are measured in activity units. Each activity in a cost center contains activity types and if the cost can be allocated to these activity types. When you create the activity types, prices of these can be entered manually or this can be calculated in system as per the cost allocated. The cost planning, allocation and control can be performed while defining activity or can also be performed at cost center.
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