A Cost Driver

question 31

Multiple Choice

A cost driver:

• A) is a factor that causes a cost.
• B) may also be a resource driver.
• C) is a unit of work performed within the organisation.
• D) is a factor that causes a cost AND may also be a resource driver.

Understand how transactions are recorded in a worksheet format and the significance of each column in the process.

Understand the principles and calculations involved in a standard cost system.

Comprehend the process of recording transactions in a standard cost system with no variable manufacturing overhead.

Grasp the concept of fixed manufacturing overhead rate and its application.