A factor that causes the cost of an activity to go up or down is a(n):
A) Direct factor.
B) Indirect factor.
C) Cost driver.
D) Product cost.
E) Contribution factor.

Question

Quizplus · Accepted Answer

A cost driver is any factor that causes a change in the cost of an activity. It is not necessarily a direct or indirect factor, and it is different from product cost or contribution factor.

A Factor That Causes the Cost of an Activity to Go