Cost drivers:
A)Vary within and across industries
B)Do not vary much across firms within the same industry
C)Vary across industries, firms, and activities within the firm
D)Do not vary across a firm's activities

Question

Quizplus · Accepted Answer

Cost drivers vary across different industries, different firms within the same industry, and even different activities within the same firm. For example, a cost driver for a manufacturing industry might be the cost of raw materials, while for a service industry it might be the salaries of employees. Within the same industry, different firms might have different cost drivers depending on factors such as their size, location, technology, and production processes. Even within the same firm, different activities might have different cost drivers. For instance, the cost driver for marketing activities might be advertising expenses, while for production activities it might be equipment maintenance costs.

Cost Drivers