Only one cost driver may affect a cost at any given time.

Question

Quizplus · Accepted Answer

Multiple cost drivers can affect a cost at any given time. Cost drivers are the factors that influence the costs of resources needed to perform an activity. They can include variables such as the volume of output, complexity of a product, technology used, skill level of employees, and many others. In order to accurately determine the cost of an activity or product, it is important to consider all relevant cost drivers.

Only One Cost Driver May Affect a Cost at Any