What is a variable,such as the level of activity or volume,called that causally affects costs over a given time span?
A)Cost accumulator
B)Cost allocation
C)Cost driver
D)Cost manager

Question

Quizplus · Accepted Answer

A variable that causally affects costs over a given time span is called a cost driver. Cost drivers are used to allocate costs to different cost objects, such as products, services or departments. They include factors such as the level of activity, volume, and complexity, which have a direct impact on the amount of resources used and the resulting costs. By identifying and measuring cost drivers, managers can better understand the cost behavior of their business and make informed decisions about pricing, production, and resource allocation.

What Is a Variable,such as the Level of Activity or Volume,called