Which of the following should have the strongest cause and effect relationship with overhead costs?
A)Cost followers.
B)Non-value-added costs.
C)Cost drivers.
D)Units of output.
E)Value-added costs.

Question

Quizplus · Accepted Answer

Cost drivers are the activities or factors that directly influence the amount of overhead costs incurred. By identifying cost drivers, a company can allocate overhead costs more accurately and reduce non-value-added costs.

Which of the Following Should Have the Strongest Cause and Effect