In production, the variables such as level of activity or volume of company activity are known as ________?
Correct answer: A. cost drivers
- A. cost drivers
- B. timed drivers
- C. variable drivers
- D. fixed drivers
Explanation
A cost driver is a factor that causes or influences the amount of cost, such as production volume, machine hours, or activity level. The other options are not standard terms for this relationship.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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