Question

which factor that cause change in cost of activity

Answer 1

An activity cost driver, also known as a causal factor, causes the cost of an activity to increase or decrease. An example is a change in the cost of warehousing or a change in the level of production

Answer 2

Introduction:

A cost driver is a factor that influences the cost of an activity. notion is most typically used to allocate overhead expenses to the number of units produced. It may also be used in activity-based costing analysis to identify the sources of overhead, which can then be utilized to reduce overhead expenses.

Explanation:

A cost driver is the direct cause of a cost, with an impact on the overall cost incurred. For instance, if you need to calculate the amount of power.

Therefore, cost driver is the factor.