The activities or variables within a producing department that provoke the incurrence of support costs are called:
A)Causal factors
B)Common costs
C)Cost objectives
D)Activity output

Question

Quizplus · Accepted Answer

Causal factors are the specific activities or variables within a producing department that lead to the incurrence of support costs. For example, in a manufacturing department, the production of a certain product line may require more setup time or machine maintenance, which would be a causal factor for incurring more support costs in those areas. Common costs are costs that are shared by multiple departments or products and cannot be directly attributed to a specific causal factor. Cost objectives are the items or services for which costs are being tracked. Activity output refers to the total amount of products or services produced by a department or company.

The Activities or Variables Within a Producing Department That Provoke