A Cost Driver Is

question 103

Multiple Choice

A cost driver is:

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

---

Definitions:

Dermis

The layer of skin beneath the epidermis that contains nerve endings, sweat glands, and hair follicles.

Ectoderm

The outermost of the three primary layers of an embryo that develops into the nervous system, skin, and related structures.

Germ Layer

One of the primary layers of cells (endoderm, mesoderm, ectoderm) in the early embryo that gives rise to all tissues and organs of the organism.

Sense Organs

Specialized structures in organisms that respond to external stimuli such as light, sound, touch, and chemicals, enabling perception.