Cost drivers are:
A) Costs linked to two or more other costs
B) A mechanical basis, such as machine hours, computer time, size of equipment, or square footage of . factory, used to assign costs to activities
C) Accounting measurements used to evaluate whether or not performance is proceeding according to plan
D) Activities that cause costs to increase as the activity increases

Question

Quizplus · Accepted Answer

Cost drivers are activities that cause costs to increase as the activity level increases. They are the factors that determine the overall cost of operations.

Cost Drivers Are