(CMA) Cost drivers are
A) Activities that cause costs to increase as the activity increases
B) Accounting techniques used to control costs
C) Accounting measurements used to evaluate whether or not performance is proceeding according to plan
D) A mechanical basis, such as machine hours, computer time, size of equipment, or square feet of factory, used to assign costs to activities

Question

Quizplus · Accepted Answer

Cost drivers are factors that cause costs to increase as the level of activity increases. They are used to allocate costs based on the level of activity.

(CMA) Cost Drivers Are