A cost driver is:
A) a collection of cost pools.
B) a cost-allocation base chosen arbitrarily.
C) any factor that caused costs to be incurred.
D) costs that behave in a similar manner.

Question

Quizplus · Accepted Answer

A cost driver is any factor that causes costs to be incurred, such as number of units produced or hours worked. It is not a collection of cost pools (A), a cost-allocation base chosen arbitrarily (B), or costs that behave in a similar manner (D).

A Cost Driver Is