What is the term for the effort expended to identify those factors that are the root causes of activity costs?
A)activity input
B)activity output
C)driver analysis
D)value-added activity

Question

Quizplus · Accepted Answer

The term for the effort expended to identify those factors that are the root causes of activity costs is driver analysis. A driver is any factor that has a material effect on the activity or cost being analyzed. Driver analysis helps organizations understand which activities are consuming resources and why, and allows them to focus on improving efficiency and effectiveness. Choices A, B, and D are not related to this concept.

What Is the Term for the Effort Expended to Identify