In time-driven ABC the cost driver rate is calculated as cost per time unit of capacity multiplied by unit times of activity.

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In time-driven activity-based costing (ABC), the cost driver rate is indeed calculated as the cost per time unit of capacity (e.g., cost per hour) multiplied by the unit times of the activity (how long the activity takes), which provides a more dynamic and accurate method of allocating costs based on actual resource consumption.

In Time-Driven ABC the Cost Driver Rate Is Calculated as Cost