A _____ is a causal factor that measures the output of the activity that causes costs to change.
A) cost commitment
B) cost driver
C) mixed cost
D) fixed cost

Question

Quizplus · Accepted Answer

A cost driver is a variable that can be used to explain the fluctuations in cost. It is a causal factor that measures the output of the activity that causes costs to change. Cost commitment refers to an agreement to incur costs at a certain level, whereas mixed costs are a combination of both fixed and variable costs. Fixed costs remain constant irrespective of the output level.

A _____ Is a Causal Factor That Measures the Output