Cost drivers are ________.
A) the different functions in the value chain
B) different types of functional areas in the firm
C) measures of activities that require the use of resources and thereby cause costs
D) different types of cost calculations

Question

Quizplus · Accepted Answer

Cost drivers are measures of activities that require the use of resources and thereby cause costs. They are used to identify the root causes of costs in order to make better business decisions and improve efficiency. Option A and B refer to different functions or functional areas within an organization, while option D refers to different methods of calculating costs, none of which accurately describe cost drivers.

Cost Drivers Are ________