Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 22

Provide an example of a structural cost driver.

Step 1 of 3

Cost Driver:

Cost drivers refer to a factor which brings changes in the activity cost. Cost drivers are generally used to allocate overhead cost to the product. And hence it is important to correctly identify the cost drivers to accurately allocate the indirect expenses.