Which of the Following Correctly Describes the Term Cost Driver

question 3

Multiple Choice

Which of the following correctly describes the term cost driver?

• A) The inflation rate which causes costs to rise
• B) The initial purchase price of direct materials
• C) The primary factor which is correlated with the amount of cost incurred to produce a product
• D) The total material, labor, and overhead cost of a completed job

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Definitions:

Ingestion

The act of consuming food, beverages, or any other material by ingestions or absorption into the organism.

Absorption

Absorption is the process by which substances are taken into the body's interior, as in the uptake of nutrients by the digestive tract.

Absorption

The process by which substances are taken up into a more assimilable form, such as nutrients from food into the bloodstream.

Peristalsis

A sequence of muscular waves that propel food along the digestive system.