Vidyalelo
Commerce · Q367

Costing

Graduate and Post Graduate · Commerce · question 367

Q367

Relationship between cost and cost drivers is

A.
stationary
B.
not stationary
Answer
C.
intrinsic
D.
extrinsic

Answer: Option B

Solution

Answer: Option B
Solution:
Relationship between cost and cost drivers is not stationary. A Cost Driver is that factor or variable which has a cause and effect relationship with the total cost. The cost driver is the 'cause' and the 'cost incurred' is the effect of it.