Activities that affect costs are often called
A) cost drivers.
B) stages of production.
C) fixed activities.
D) variable activities.

Question

Quizplus · Accepted Answer

Activities that affect costs are called cost drivers, as they are the factors that cause changes in costs. Cost drivers can be either fixed (such as rent) or variable (such as labor or raw materials). Identifying cost drivers is important for cost management and control.

Activities That Affect Costs Are Often Called