Cost Driver Is

question 65

Multiple Choice

Cost driver is:

• A)a mathematical relationship that shows how total costs vary with the factors that influence total costs
• B)a factor that influences or "drives" total or average costs
• C)a factor that influences quality of output and prices of inputs
• D)a cost level.

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Definitions:

Certified Public Accountants

Professionals who have passed the CPA examination and met all other state certification requirements, authorized to provide accounting services to the public.

Diseconomies of Scale

A situation where, as a firm increases its production, the costs per unit increase.

Constant Returns to Scale

A situation in which increasing the amount of inputs results in a proportional increase in outputs.

Diseconomies of Scale

A situation in which production costs increase as a firm’s output increases, leading to decreased efficiency.