Which of the Following Correctly Describes the Term Cost Driver

question 31

Multiple Choice

Which of the following correctly describes the term cost driver?

• A) the inflation rate that causes costs to rise
• B) the average inventory costs incurred at any point of time
• C) the primary factor that causes a cost to be incurred
• D) the total material, labor, and overhead costs of a completed job

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Definitions:

Cash Flow

The all-encompassing total of fund transactions in and out of a business, essentially shaping its liquid financial state.

Net New Equity

The difference between equity capital raised by issuing new shares and the equity capital repurchased or retired over a specific period.

Operating Cash Flow

Funds arising from an enterprise's standard operational processes, demonstrating whether the enterprise can generate adequate positive cash flow to support and increase its activities.

Millions

A numerical unit representing one thousand thousand, or 1,000,000, often used to quantify currency, population, or other large-scale counts.