Which of the following is an activity that causes changes in the amount of a cost pool?
A) Cost element
B) Cost function
C) Cost driver
D) Cost allocation

Question

Quizplus · Accepted Answer

Cost driver is an activity that causes changes in the amount of a cost pool. It is used to allocate indirect costs to production activities, products, or other cost objectives based on the activity or volume of the cost driver. Choices A, B, and D are not activities that directly cause changes in the amount of a cost pool.

Which of the Following Is an Activity That Causes Changes