An item or event that has a cause-effect relationship with the incurrence of a variable cost is called a
A)mixed cost.
B)predictor.
C)direct cost.
D)cost driver.

Question

Quizplus · Accepted Answer

A cost driver is an item or event that has a cause-effect relationship with the incurrence of a variable cost. It drives the variability in a cost, and is used to predict changes in the cost.

An Item or Event That Has a Cause-Effect Relationship with the Incurrence