An Activity Cost Driver Is

question 24

Multiple Choice

An activity cost driver is

• A)a factor that causes variations in a cost.
• B)another term for input measure.
• C)the largest single category of cost in a company.
• D)a variable cost.

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Definitions:

Standardization

The process of implementing and developing technical standards to ensure consistency and compatibility of products and services.

Pricing

The method of determining the value at which a product or service will be sold to consumers.

Transfer Pricing

Pertains to the pricing of goods, services, and intellectual property when these are exchanged between companies under a common control, affecting tax liabilities and financial results.

Division Charges

Fees or costs allocated to separate departments or divisions within a company for internal accounting or budgeting purposes.