The underlying factors that trigger costs to be incurred when an activity is performed are known as:
A) activity trigger costs.
B) root cause.
C) cost driver analysis.
D) root cause cost driver.

Question

Quizplus · Accepted Answer

Root cause cost drivers are the underlying factors that trigger costs to be incurred when an activity is performed. They help to identify the source of the cost and can be used to develop strategies for cost reduction.

The Underlying Factors That Trigger Costs to Be Incurred When