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.

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects debt from its customers over a period.

Financial Data

Financial data encompasses information on a company's financial performance, including income statements, balance sheets, cash flow statements, and ratios, used for analysis and decision-making.

Year

A period of approximately 365 days used for calculating time in most of the world, divided into 12 months.

Working Capital

Current assets minus current liabilities, indicating the liquidity of a business and its ability to meet short-term obligations.