A cost driver is:
A) A measure of activity that causes costs to fluctuate
B) Only used in ABC systems
C) Seldom related to cost changes in an ABC system
D) Usually related to cost changes in a traditional costing system

Question

Quizplus · Accepted Answer

A cost driver is a measure of activity that causes costs to fluctuate. It is used in both traditional costing systems and ABC systems. Seldom related to cost changes in an ABC system and only used in ABC systems are incorrect statements.

A Cost Driver Is