In activity-based costing,cost reduction efforts are directed at specific
A)cost categories.
B)cost pools.
C)processes.
D)cost drivers.

Question

Quizplus · Accepted Answer

In activity-based costing, cost drivers refer to the specific activities that cause costs to be incurred. Therefore, cost reduction efforts are directed at specific cost drivers in order to reduce overall costs. Cost categories are too broad, cost pools combine multiple types of costs, and processes may involve multiple cost drivers.

In Activity-Based Costing,cost Reduction Efforts Are Directed at Specific