Question

what is the meaning of cost driver in cost accounting.

Answer 1

A cost driver triggers a change in the cost of an activity. The concept is most commonly used to assign overhead costs to the number of produced units. It can also be used in activity-based costing analysis to determine the causes of overhead, which can be used to minimize overhead costs.

Answer 2

Cost driver in cost accounting is a unit of activity that causes a business to endure costs.
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