In activity based costing system, description of activity can be classified as

The correct answer is: Both A and B.

An activity list is a comprehensive list of all the activities that are performed in an organization. It is used to identify the activities that need to be costed in an activity-based costing system.

An activity dictionary is a detailed description of each activity in the activity list. It includes information such as the purpose of the activity, the resources that are used, and the time that is spent on the activity.

Both the activity list and the activity dictionary are essential for developing an accurate activity-based costing system.

Here is a brief explanation of each option:

• Activity list is a comprehensive list of all the activities that are performed in an organization. It is used to identify the activities that need to be costed in an activity-based costing system.
• Activity dictionary is a detailed description of each activity in the activity list. It includes information such as the purpose of the activity, the resources that are used, and the time that is spent on the activity.
• Active purpose is not a valid option.