The term cost driver refers to
A)any activity that can be used to predict cost changes.
B)the attempt to control expenditures at a reasonable level.
C)the person who gathers and transfers cost data to the management accountant.
D)any activity that causes costs to be incurreD.

Question

Quizplus · Accepted Answer

Cost drivers are activities that cause costs to be incurred. They are used to identify the root causes of cost overruns or cost savings. By understanding the cost drivers, management can better control and manage costs. Therefore, option D is the correct answer.

The Term Cost Driver Refers to