A Cost Driver Is

question 76

Multiple Choice

A cost driver is:

• A) a collection of cost pools.
• B) a cost-allocation base chosen arbitrarily.
• C) any factor that caused costs to be incurred.
• D) costs that behave in a similar manner.

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Definitions:

Departmental Areas

Specific sections within an organization or entity, designated for particular administrative functions or activities.

Flexible Manufacturing Systems

Integrated manufacturing systems that use computer-controlled machinery, automation, and flexible processes to produce a variety of products efficiently.

Control Programs

Techniques and measures implemented to regulate processes and activities to ensure they meet desired standards and objectives.

Repetitive Process Line

A manufacturing process in which products are made through a sequential and continuous manner, characterized by a highly standardized production flow.