What is the term for activities or variables within a producing department that provoke the incurrence of support costs?

Question

Quizplus · Accepted Answer

Causal factors are the activities or variables within a producing department that provoke the incurrence of support costs. These factors can include things like the number of setups or the complexity of the product being produced.

Answer: B 
 Common costs are costs that cannot be traced to a specific product or department and are instead allocated based on some predetermined method, such as labor hours or machine usage. Support costs are often considered common costs because they are incurred to support multiple departments or products.

Answer: C 
 Cost objectives are the specific products, departments, or activities that a company wants to allocate costs to. These cost objectives may include things like individual products or departments, but they could also be specific activities within a department that have significant cost implications.

Answer: D 
 Activity output refers to the goods or services produced by a specific activity within a department. This output can be used as a cost driver to allocate support costs to the various cost objectives within the department.

What Is the Term for Activities or Variables Within a Producing