Managers set cost reduction targets in terms of reducing the cost per unit of the activity:
A)cost pools.
B)cost analysis.
C)cost savings.
D)cost drivers.

Question

Quizplus · Accepted Answer

The term "cost drivers" refers to the factors that determine the cost of an activity. Managers can set cost reduction targets by identifying and addressing these cost drivers, which ultimately results in reducing the cost per unit of the activity.

Managers Set Cost Reduction Targets in Terms of Reducing the Cost