The term "cost driver" refers to the activity that causes cost to change.
An activity driver measures the frequency or intensity with which a cost object requires the use of an activity, thereby relating the performance of an activity's tasks to the needs of one or more cost objects.
Current cost. Replacement cost or net realizable value.
In labor intensive industry direct labor cost is used as cost driver.
define cost and selling price
Could you define a "computer blackbox"?
A cost driver is a factor that causes variations in a cost.
cost driver examples
Book cost ; sunk cost. A cost incurrence where the cash expenditure has already occurred, such as the cost of depreciation for a machine purchased several years ago.
posses a driver's license.
Traceable cost ; direct cost. A cost the firm can identify with a specific product, such as the cost of a computer chip installed in a given personal computer, or with some activity.
A cost is generally understood to be that sacrifice incurred in an economic activity to achieve a specific objective, such as to consume, exchange, or produce.
Cost driver is the basic activity which increases the or utilize the cost while cost pool is that in which all costs are jointly shown for example machine setup cost is cost driver while over all overheads is cost pool.