Engineered costs result from a cause-and-effect relationship between the cost driver and the ________.

Question

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Engineered costs are costs that have a direct cause-and-effect relationship with the resources used to produce that output. This means that the cost driver directly affects the resources used and therefore drives the cost. Examples of engineered costs include direct materials, direct labor, and equipment maintenance costs.

Engineered Costs Result from a Cause-And-Effect Relationship Between the Cost