A Cost Driver Is

question 45

Multiple Choice

A cost driver is:

• A)An overhead or activity rate.
• B)A basis used to allocate each of the activity cost pools.
• C)The estimated cost of each activity pool.
• D)Used only to allocate non-volume-related costs.

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Definitions:

TQM

Total Quality Management; a comprehensive and structured approach to organizational management that seeks to improve the quality of products and services through ongoing refinements in response to continuous feedback.

Maintenance

Activities undertaken to keep equipment or systems functioning efficiently through preventive measures or repairs.

Reliability Tactic

Strategies or practices aimed at ensuring a system or component performs its required function under stated conditions for a specified period.

Individual Components

Distinct parts or elements that make up a complex product, system, or assembly.