A cost driver is defined as

 · Business. Accounting. Accounting questions and answers. 1. A cost driver is defined as: (CMA adapted) A. the largest cost in a manufacturing process. B.a fixed cost that cannot be avoided. www.doorway.ru significant factor in developing a new product. D.a causal factor that increases the total cost of a cost objective. 2.  · Definition Of Cost Driver. ABC Costing is a method of costing, which is famous for more scientifically absorbing the overheads / indirect costs. For this, the whole process of manufacturing is divided into activities. Each activity cost pool is then assigned an Activity Cost Driver. With the help of these drivers, the cost is allocated to products.  · A cost driver affects the cost of specific business activities. In activity-based costing (ABC), an activity cost driver influences the costs of .

The cost driver definition implicit driver option lets you use a table to define the driver quantities and driver targets using an implicit pointer to point to a particular table. Use this driver to specify specific subsets of costs such as transaction costs. cost drivers. elements of a firm's operations which individually and collectively determines the level of the firm's (average or unit) COSTS. The ability to ‘drive’ or ‘manage’ costs down (or contain cost increases) is an important strategic consideration where cost leadership is the key basis of the firm's COMPETITIVE ADVANTAGE over rival suppliers. A cost driver is a factor that creates or drives the cost of the activity. It is the root cause of why a particular cost occurred. Activities consume resources while customers, products, and channels of production consume activities. Understanding this is fundamental to the cost allocation concept using cost drivers.

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