Q331
In production, variables such as level of activity or volume of company activity are known as
A.
cost drivers
AnswerB.
timed drivers
C.
variable drivers
D.
fixed drivers
Answer: Option A
Solution
Answer: Option A
Solution:
In production, variables such as level of activity or volume of company activity are known as cost drivers. A cost driver is the direct cause of a cost, and its effect is on the total cost incurred.