The cost-driver rate is the estimated cost of resource consumption per unit of cost driver base for each activity.

Name: The cost-driver rate is the estimated cost of resource consumption per unit of cost driver base for each activity.
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Question

Quizplus · Accepted Answer

The cost-driver rate is indeed calculated as the estimated cost of resource consumption divided by the expected units of the cost driver base for each activity, allowing for the allocation of indirect costs to products or services based on their use of those activities.

The Cost-Driver Rate Is the Estimated Cost of Resource Consumption