Final answer:
An alternative term for an activity measure or allocation base in Activity-Based Costing is 'cost driver.' It's a fundamental element in costing methodologies such as ABC and economic base analysis, which uses tools like the location quotient for economic planning.
Step-by-step explanation:
Another name for an activity measure or allocation base in Activity-Based Costing (ABC) is cost driver.
In ABC, a cost driver is essentially what determines the extent of variable costs incurred during a specific activity. The choice of a cost driver in economic analysis, such as the economic base analysis, influences the accuracy of the allocation of costs.
The economic base analysis uses the location quotient to help determine the economic activities that bring in money from outside the region. This type of analysis is quite beneficial for business planners and entrepreneurs to identify potential areas for business development or to recognize regions with excessive competition.