Asked by Jamie Flexer on May 28, 2024
Verified
Any activity or factor that causes a cost to be incurred is known as a:
A) cost pool.
B) cost driver.
C) cost allocation.
D) cost object.
Cost Driver
A factor that causes a change in the cost of an activity, directly affecting the cost of production or operations.
Cost Pool
A grouping of individual costs typically by department or service, from which cost allocations are made to products or services.
Cost Allocation
The process of assigning indirect costs to different departments, projects, or production processes within a company to ensure accurate product costing or project budgeting.
- Absorb the fundamentals and importance of cost drivers within product costing methodologies.
Verified Answer
Learning Objectives
- Absorb the fundamentals and importance of cost drivers within product costing methodologies.
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