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According to Four-Drive Theory, Three Drives Are Proactive (I

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According to four-drive theory, three drives are proactive (i.e. we actively seek to fulfill them), whereas the drive to defend is reactive (activated only in reaction to threat).


Definitions:

Factory Supervision Labor

The labor costs associated with supervising and managing workers in a manufacturing facility.

Equipment Rental

Equipment rental refers to the process of leasing machinery, tools, or other equipment from a third party for a specified period of time, often as an alternative to purchasing them outright.

Predetermined Overhead Rate

A rate estimated before the accounting period begins, used to allocate manufacturing overhead to products or job orders.

Factory Overhead

The indirect manufacturing costs not directly tied to the production of a specific product, such as electricity for the manufacturing plant.

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