Tel me more about Fixed Costs driver
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A cost driver is the direct cause of a cost. Fixed costs are costs that remain unchanged regardless of the amount of output a company produces, while variable costs change with production volume.In such a scenario, the number of units of electricity consumed is a cost driver
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A cost driver is the direct cause of a cost and its effect is on the total cost incurred. For example, if you are to determine the amount of electricity consumed in a particular period, the number of units consumed determines the total bill for electricity. In such a scenario, the number of units of electricity consumed is a cost driver.
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