The term cost driver refers to
A)any activity that can be used to predict cost changes.
B)the attempt to control expenditures at a reasonable level.
C)the person who gathers and transfers cost data to the management accountant.
D)any activity that causes costs to be incurred.

Question

Quizplus · Accepted Answer

A cost driver is any activity that causes costs to be incurred. It is a factor that impacts the cost of producing a product or service. By identifying cost drivers, management can better understand the factors influencing costs and make informed decisions about how to control them.

The Term Cost Driver Refers to