What Is a Cost Driver

question 91

Multiple Choice

What is a cost driver?

• A) It is the largest single category of cost in a company.
• B) It is a fixed cost that cannot be avoided.
• C) It is a factor that causes variations in a cost.
• D) It is an indirect cost that is essential to the business.

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Definitions:

Neurotransmitter

Chemical substances in the nervous system that transmit signals across a neuronal synapse between neurons or from neurons to muscles.

Somatic Nervous System

Part of the peripheral nervous system associated with voluntary control of body movements through action of skeletal muscles.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, which integrates information received from the body and directs activity.

Pancreas

An organ in the digestive and endocrine systems that produces hormones such as insulin and digestive enzymes.