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:

Captive Finance Company

A subsidiary whose purpose is to provide financing to customers of a parent company, facilitating sales of the parent company's products.

Financing

The act of supplying capital for company operations, acquiring assets, or investing.

Major Kitchen Appliances

Large household appliances such as refrigerators, stoves, and dishwashers that are essential for kitchen operations.

Retail Credit Company

A company specializing in the issuance and management of credit to consumers, often directly linked to specific retail stores or brands.